[House Hearing, 112 Congress]
[From the U.S. Government Publishing Office]
WHERE THE JOBS ARE: PROMOTING TOURISM TO AMERICA
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON COMMERCE, MANUFACTURING, AND TRADE
OF THE
COMMITTEE ON ENERGY AND COMMERCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED TWELFTH CONGRESS
SECOND SESSION
__________
MAY 16, 2012
__________
Serial No. 112-144
Printed for the use of the Committee on Energy and Commerce
energycommerce.house.gov
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COMMITTEE ON ENERGY AND COMMERCE
FRED UPTON, Michigan
Chairman
JOE BARTON, Texask HENRY A. WAXMAN, California
Chairman Emeritus Ranking Member
CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan
ED WHITFIELD, Kentucky Chairman Emeritus
JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts
JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York
MARY BONO MACK, California FRANK PALLONE, Jr., New Jersey
GREG WALDEN, Oregon BOBBY L. RUSH, Illinois
LEE TERRY, Nebraska ANNA G. ESHOO, California
MIKE ROGERS, Michigan ELIOT L. ENGEL, New York
SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas
Vice Chairman DIANA DeGETTE, Colorado
JOHN SULLIVAN, Oklahoma LOIS CAPPS, California
TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania
MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois
MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas
BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin
CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas
PHIL GINGREY, Georgia JIM MATHESON, Utah
STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina
ROBERT E. LATTA, Ohio JOHN BARROW, Georgia
CATHY McMORRIS RODGERS, Washington DORIS O. MATSUI, California
GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin
LEONARD LANCE, New Jersey Islands
BILL CASSIDY, Louisiana KATHY CASTOR, Florida
BRETT GUTHRIE, Kentucky JOHN P. SARBANES, Maryland
PETE OLSON, Texas
DAVID B. McKINLEY, West Virginia
CORY GARDNER, Colorado
MIKE POMPEO, Kansas
ADAM KINZINGER, Illinois
H. MORGAN GRIFFITH, Virginia
_____
Subcommittee on Commerce, Manufacturing, and Trade
MARY BONO MACK, California
Chairman
MARSHA BLACKBURN, Tennessee G.K. BUTTERFIELD, North Carolina
Vice Chairman Ranking Member
CLIFF STEARNS, Florida CHARLES A. GONZALEZ, Texas
CHARLES F. BASS, New Hampshire JIM MATHESON, Utah
GREGG HARPER, Mississippi JOHN D. DINGELL, Michigan
LEONARD LANCE, New Jersey EDOLPHUS TOWNS, New York
BILL CASSIDY, Louisiana BOBBY L. RUSH, Illinois
BRETT GUTHRIE, Kentucky JANICE D. SCHAKOWSKY, Illinois
PETE OLSON, Texas JOHN P. SARBANES, Maryland
DAVID B. McKINLEY, West Virginia HENRY A. WAXMAN, California (ex
MIKE POMPEO, Kansas officio)
ADAM KINZINGER, Illinois
JOE BARTON, Texas
FRED UPTON, Michigan (ex officio)
(ii)
C O N T E N T S
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Page
Hon. Mary Bono Mack, a Representative in Congress from the State
of California, opening statement............................... 1
Prepared statement........................................... 4
Hon. G.K. Butterfield, a Representative in Congress from the
State of North Carolina, opening statement..................... 7
Hon. Janice D. Schakowsky, a Representative in Congress from the
State of Illinois, opening statement........................... 8
Hon. Marsha Blackburn, a Representative in Congress from the
State of Tennessee, opening statement.......................... 9
Hon. Henry A. Waxman, a Representative in Congress from the State
of California, opening statement............................... 10
Witnesses
Hon. Mazie K. Hirono, a Representative in Congress from the State
of Hawaii...................................................... 11
Prepared statement........................................... 14
Nicole Y. Lamb-Hale, Assistant Secretary for Manufacturing and
Services, International Trade Administration, Department of
Commerce....................................................... 17
Prepared statement........................................... 20
Answers to submitted questions............................... 101
James P. Evans, Chief Executive Officer, Corporation for Travel
Promotion, a.k.a. Brand USA.................................... 39
Prepared statement........................................... 42
Answers from Caroline Beteta, Interim CEO, Brand USA, Inc.,
to submitted questions..................................... 107
Geoff Freeman, Chief Operating Officer and Executive Vice
President, U.S. Travel Association............................. 49
Prepared statement........................................... 52
Answers to submitted questions............................... 114
Deborah Marriott Harrison, Senior Vice President, Government
Affairs, Marriott International, Inc........................... 60
Prepared statement........................................... 62
Answers to submitted questions............................... 122
Scott White, President and Chief Executive Officer, Greater Palm
Springs Convention and Visitors Bureau......................... 70
Prepared statement........................................... 72
Answers to submitted questions............................... 124
Patrick T. Long, Center for Sustainable Tourism, Division of
Research and Graduate Studies, East Carolina University........ 76
Prepared statement........................................... 78
WHERE THE JOBS ARE: PROMOTING TOURISM TO AMERICA
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WEDNESDAY, MAY 16, 2012
House of Representatives,
Subcommittee on Commerce, Manufacturing and Trade,
Committee on Energy and Commerce,
Washington, DC.
The subcommittee met, pursuant to call, at 10:22 a.m., in
room 2322, Rayburn House Office Building, Hon. Mary Bono Mack
(chairwoman of the subcommittee) presiding.
Members present: Representatives Bono Mack, Blackburn,
Harper, Lance, Guthrie, Olson, Pompeo, Kinzinger, Butterfield,
Gonzalez, Schakowsky, Sarbanes, and Waxman (ex officio).
Staff present: Paige Anderson, Commerce, Manufacturing, and
Trade Coordinator; Charlotte Baker, Press Secretary; Kirby
Howard, Legislative Clerk; Brian McCullough, Senior
Professional Staff Member, Commerce, Manufacturing, and Trade;
Gib Mullan, Chief Counsel, Commerce, Manufacturing, and Trade;
Andrew Powaleny, Deputy Press Secretary; Sam Spector, Counsel,
Oversight; Shannon Weinberg, Counsel, Commerce, Manufacturing,
and Trade; Michelle Ash, Democratic Chief Counsel, Commerce,
Manufacturing, and Trade; Felipe Mendoza, Democratic Counsel;
and Will Wallace, Democratic Policy Analyst.
OPENING STATEMENT OF HON. MARY BONO MACK, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF CALIFORNIA
Mrs. Bono Mack. The subcommittee will now come to order.
Good morning.
When it comes to jobs and the economy, tourism is a common
thread that weaves its way through all 50 States. The leisure
and hospitality sector is now the fifth largest employer in the
United States. As a subcommittee what can we do to promote
growth in this critically important industry? I am reminded of
something St. Augustine once said: The world is a book, and
those who do not travel read only one page.
The chair now recognizes herself for an opening statement.
Rebounding from both a prolonged recession and the
demoralizing 9/11 terrorist attacks on our Nation, tourism is
once again a growth industry in America. Clearly, sustaining
that growth as well as creating long-term stability in the
tourism marketplace are keys to creating tens of thousands of
new jobs across the United States. The President's Task Force
on Travel and Competitiveness has set a lofty goal of
attracting 100 million international visitors who spend $250
billion annually by the end of 2021. Can we accomplish that
goal? Well, as chairman of the subcommittee, here is my answer:
Let us roll up our sleeves and get to work.
Today tourism is among the top 3 employers in 29 States,
and it is the number 1 industry in my district, which includes
Palm Springs, Palm Desert, Coachella, and the entire Coachella
Valley.
Last year tourism nationwide generated $1.2 trillion in
economic activity and supported nearly 8 million jobs. But here
is what is really encouraging: In 2011, travel and tourism in
America grew by 3-1/2 percent, more than twice the rate of
growth for the entire economy. And there is more good news. The
U.S. has set records for international visits in 4 of the last
5 years. Today more money is spent on tourism in the U.S. than
in any other country around the world.
So how do we sustain that growth and create even more
American jobs? One important way is to maximize the
effectiveness of the Travel Promotion Act, which Congress
approved in 2010 with bipartisan support. The act created the
nonprofit Corporation for Travel Promotion, or CTP, with
specific duties intended to increase international travel to
the U.S. These duties include providing information to foreign
travelers, such as U.S. entry requirements, fees and required
documentation; identifying and correcting misperceptions
regarding U.S. entry policies; maximizing economic and
diplomatic benefits of travel to the U.S. through advertising,
outreach and trade shows; ensuring that international travel
benefits all States; and identifying strategies to promote
travel to rural and urban areas equally; and finally, placing a
priority on countries whose citizens are most likely to travel
to the U.S.
The CTP is funded through a transfer of fees collected from
international travelers who access the Electronic System for
Travel Authorization system for visitors under the Visa Waiver
Program. The fee is currently set at $14, of which $4 is
dedicated to maintaining the ESTA system, and the remaining $10
is directed to the Treasury to be held for CTP.
The Secretary of the Treasury may transfer up to $100
million per year of these funds to the CTP, but first the CTP
must raise matching funds through contributions of industry
members. The Treasury Secretary's authority to collect these
fees will sunset on September 30th of 2015. Should these fees
be renewed in the future? Should they be increased? How
effective has CTP been in promoting tourism? These are all
critically important questions which we will have an
opportunity to ask today.
Among those testifying at this hearing is James Evans,
chief executive officer for the Corporation for Travel
Promotion, known as Brand USA. I am also anxious to hear the
thoughts of our administration witness, the Honorable Nicole
Lamb-Hale, who serves as Assistant Secretary for Manufacturing
and Services at the International Trade Administration. The
Department of Commerce through ITA is responsible for
strengthening U.S. competitiveness, promoting trade and
investment, and enforcing trade laws and agreements.
Here is the challenge: If we are going to achieve the
administration's tourism goals within the next decade, both ITA
and CTP will have to step up their games in the years ahead.
While the numbers of the visitors to the U.S. has grown
impressively, increasing from 41 million in 2003 to 62.3
million in 2011, how do we get to 100 million visitors by 2021?
What could hold back that growth, and is there a plan B?
As we found out all too painfully during the recent
recession, the tourism industry tends to suffer when times are
tough. We witnessed that up front and personal in the Greater
Palm Springs area when many businesses were forced to close or
lay off workers. But we can mute that negative economic impact
in the future--but can we, excuse me, mute that negative
economic impact in the future by substantially increasing
international travel to the U.S.?
As I said earlier, given the importance of tourism to the
U.S. economy, and given the promise of creating tens of
thousands of new American jobs, it is our job to make certain
that we have a sound strategy and forward-looking policies in
place which will positively promote the U.S. around the world,
provide international travelers with a unique experience, and
leave them with lasting treasured memories of their trip to the
U.S. After all, there is no better travel promotion in the
world than having a friend plug their visit to another friend.
And on that note don't forget that the Palm Springs area is
a fabulous place to visit anytime during the year, and the
welcome sign is always out.
[The prepared statement of Mrs. Bono Mack follows:]
[GRAPHIC] [TIFF OMITTED] 82267.001
[GRAPHIC] [TIFF OMITTED] 82267.002
[GRAPHIC] [TIFF OMITTED] 82267.003
Mrs. Bono Mack. With that, the gentleman from North
Carolina, Mr. Butterfield, the ranking member of the
Subcommittee on Commerce, Manufacturing and Trade, is now
recognized for 5 minutes for his opening statement.
OPENING STATEMENT OF HON. G.K. BUTTERFIELD, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF NORTH CAROLINA
Mr. Butterfield. Thank you, Madam Chair. I want to thank
you for holding today's hearing on this very important topic of
tourism and how we can work together to promote tourism here in
our great country. And a special welcome to my friend, the
gentlelady from Hawaii. Thank you very much for coming and
spending this time with us today.
The United States is second only to France in the number of
annual international visitors it welcomes each year. With all
due respect to that country in Europe that we call France, it
needs to be our goal to move our country into the top spot, and
we are moving in the right direction.
In 1996, Congress directed the Department of Commerce to
create what would become the Office of Travel and Tourism
Industries in the International Trade Administration. The goal
of that office is to enhance the international competitiveness
of the U.S. Travel and tourism industry and increase its
exports, thereby creating U.S. employment and economic growth.
For the last 6 years, OTTI has conducted extensive research
and has offered policy suggestions on ways to increase
international travel. I am pleased to see Nicole Lamb-Hale, the
Assistant Secretary for Manufacturing and Services, here today,
and I look forward to hearing her testimony.
What does tourism mean in real terms? It means jobs, and
increased tax revenues, and cultural enrichment, among many
other things. Boosting international tourism will create new
jobs and spur economic activities that cannot be outsourced. It
takes just 35 new international travelers to support 1 new U.S.
job. Each international visitor to the U.S. will spend about
$4,000 while here. Considering that we welcomed over 62 million
international travelers to the United States last year alone,
spending by international travelers can be a boon for local
communities and small business around the country.
Today in my home State of North Carolina, the State
government is hosting North Carolina Tourism Day, where
industry leaders and State government officials and everyday
citizens heat with legislators and policymakers to learn ways
to make the most of what our State has to offer. And so the
great State of California has a lot to offer, and North
Carolina on the east coast does as well.
North Carolina visitors spend over $17 billion annually,
and are responsible for supporting over 200,000 local jobs. I
am particularly thankful that Dr. Pat Long from East Carolina
University Center for Sustainable Tourism is here. I am
interested to hear his views on how adopting sustainable
tourism policies can reduce costs to industry, help maximize
profits, and drive increases in international tourism.
It is clear that every sector of the economy benefits from
increases in tourism, and I stand ready to work with my
colleagues and you, Madam Chairman, on legislative initiatives
that will help promote international tourism and create jobs.
I will also note that there is something we can do that
doesn't cost a thing. It is something that we do very well in
my home State, and it is called just being nice, and greeting
people with a smile when they come through the door, being
polite, saying thank you and you are welcome. If we can train
the airlines and TSA and USCIS to employ the Golden Rule when
interacting with international visitors, we can go a long way
in breaking down barriers to international travel.
Did you write that?
With that said, I would like to thank our witnesses for
being here today and yield the remainder of my time--I will do
that later on, Ms. Schakowsky. We are going to hold back on
that. We will yield back at this time. Thank you.
Mrs. Bono Mack. Thank you, Mr. Butterfield.
Ms. Schakowsky. Excuse me, did you----
Mrs. Bono Mack. I thought he yielded back.
Mr. Butterfield. I was told that if I didn't--let me
reclaim my time if I can. I was told that if I had less than 2
minutes, I would be yielding back. How much time did I have
left? It was a minute 30.
Would you like that time, Mr. Waxman?
Mr. Waxman. No, I thought you would give----
Mr. Butterfield. I was told less than 2 minutes to----
Ms. Schakowsky. I will take it.
Mr. Butterfield. With unanimous consent, I ask permission
to yield.
Mrs. Bono Mack. No objection. The gentlelady is recognized.
Mr. Butterfield. Thank you.
Ms. Schakowsky. Thank you.
OPENING STATEMENT OF HON. JANICE D. SCHAKOWSKY, A
REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS
In general, tourism promotion is a bipartisan issue. We
appreciate it. In Chicago we have the seventh most significant
port of entry for international travelers, 1.2 million visitors
starting their U.S. trips there. And we are going to discuss an
important initiative of the Corporation for Travel Promotion,
now called Brand USA, which was a bipartisan creation, but we
can't pretend that both parties are committed to creating an
environment that is welcoming to visitors.
Our witnesses are going to highlight the need for a fast
and efficient visa system--I know that there are many countries
that we would like as more travelers. I was just in Brazil;
they would love that. Poland, important for Chicago--and a
streamlined customs process at ports of entry; and efficient
transportation infrastructure that can handle millions of
visitors a year.
The majority's budget appropriations bills would not invest
in any of these priorities. Instead they would make severe cuts
in them. They are pushing for cuts to the State Department
budget, infrastructure spending, airports, and even air traffic
control. How will foreign visitors get here if there aren't
sufficient air traffic controllers on the job to help their
planes land safely?
The travel and tourism sector is a perfect example how the
Federal Government's contributions can build a solid base on
which the private sector can thrive and together create
thousands or millions of jobs, but cutting the vital public
side of this coin, I believe, is misguided and harmful to our
economy. I hope that we could all agree on things that in many
more ways will promote tourism in our country, and I yield
back. I yield back to Mr. Butterfield.
Mr. Butterfield. Thank you. I reclaim my time and yield
back the balance.
Mrs. Bono Mack. Thank you.
The chair now recognizes Mrs. Blackburn of Tennessee.
OPENING STATEMENT OF HON. MARSHA BLACKBURN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF TENNESSEE
Mrs. Blackburn. Thank you, Madam Chairman.
We are all talking about what we think makes our area of
the country uniquely wonderful, and we do like to promote that.
I think what concerns us is what we have seen come from this
administration in nontraditional and nonsensical policies. And
one of our greatest promoters of U.S. Tourism, Steve Wynn, had
this to say, and I am quoting: ``This administration is the
greatest wet blanket to business and progress in job creation
in my lifetime,'' end quote.
And here is an example. Just recently DOJ levied a new
mandate on the hospitality industry requiring each pool and hot
tub to come equipped with a pool lift. Each of these new lifts
costs upwards of $6,000. This new mandate is leaving many hotel
owners with the decision to either pave over their pools, which
may make their hotel less competitive, or spend tens of
thousands of dollars to comply, funds which could have been
better spent on hiring new employees or competing to host
tourists and conventions. Furthermore, the traveling public is
facing an avalanche of travel barriers due to ever-rising gas
prices and the aggressive overreach of the TSA at our Nation's
airports.
Last year the U.S. Travel Association asked air travelers
if they were likely to take more trips next year by commercial
airline after being made a way of the TSA's new screening
initiatives. Only 49 percent said that they were very or
somewhat likely to fly more.
If we don't want to become the world's leading exporter of
tourism, we need to stop shooting ourselves in the foot with
steel-plated government policies that leave us less competitive
and less secure. It is quite obvious that we need to scale back
the Federal Government's heavy-handed overreach that is
negatively impacting tourism in all of our districts. We need
to be looking at ways to incentivize tourism and travel, and
certainly in Tennessee we want you to come see the Great Smoky
Mountains, the Country Music Hall of Fame, Graceland, Shiloh
battlefield. We want you to come to the Grand Ole Opry, and
then go to downtown Franklin, Leipers Fork and be sure to spend
plenty of money.
So we welcome you, and I yield back.
Mrs. Bono Mack. I thank the gentlelady.
And the chair recognizes Mr. Waxman for 5 minutes.
OPENING STATEMENT OF HON. HENRY A. WAXMAN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF CALIFORNIA
Mr. Waxman. Thank you very much, Madam Chair, for holding
this hearing. International tourism is a proven engine of
economic growth in our country and a significant contributor to
our national economic recovery.
This shouldn't be a partisan issue, but we have almost had
no hearings in the last year and a half where the Republicans
have not turned it into a partisan issue. The comment about the
regulations for swimming pools was to comply with the Americans
with Disabilities Acts. I think Steve Wynn should care a lot
about that, because he is a man who is suffering from
disabilities, and he would probably benefit because of his lack
of sight to have such a lift in the swimming pools. I don't
think hotels are paving over their swimming pools because they
have a regulation to protect the disabled. We even want
disabled people to come to the United States, and we want to
stay to hello to them, and welcome them here, and have them
spend their money. It is just as good as anybody else's.
According to the Department of Commerce, tourism spending
surged 8 percent last year to over a trillion dollars. It
supported 7.6 million jobs. This is one of our Nation's top
exports, one of the few export industries guaranteed to create
jobs that won't move offshore.
Foreign visitors are putting Americans back to work and
giving the world a window into our natural and cultural
treasures. Luckily we have two people here from California that
are going to advance our cause, because we are the gateway for
tourism and hospitality in the Pacific area.
The Chamber of Commerce estimates that every 1 percent
increase in international visitors to Los Angeles infuses local
business with a $43 million increase in direct spending and an
estimated $88 million increase in economic impact. So the
question is, How can we get more people to come?
The President, we only have one at a time, this one, laid
out a robust goal to attract 100 million international visitors
annually within 10 years, a goal that I think both parties
ought to support. The National Travel and Tourism Strategy
unveiled last week is a blueprint to make it achievable with
concerted coordination between government and industry.
Some of the opportunities to attract more foreign visitors
can be found in the Visa Waiver Program, which enables visitors
from eligible countries to tour the United States for up to 90
days without a visa. After South Korea became eligible for this
program in 2008, the number of Korean visitors to the United
States increased 30 percent, an estimate to indicate that the
number could increase by another 55 percent by 2016. Other
solutions will require target improvements to speed the
resolution of visa backlogs in countries not eligible for the
Visa Waiver Program.
Well, I would be remiss if I didn't talk about why tourists
come to my district. In Beverly Hills we have Rodeo Drive; in
Hollywood the Grauman Chinese Theater and the Hollywood Walk of
Fame, the beaches of Santa Monica and all the way down the
coast. We have lesser known, but wonderful tourism
opportunities. One example is the Conejo Valley, where
internationally renowned tourists--Tour de France teams have
been training along the world-class hiking/biking trails of
Santa Monica Mountains National Recreation Centers.
We have a lot of wonderful things to see, and there are
times during the year when Palm Springs gets a little warm, so
while they spend maybe a little less time in Palm Springs, they
can come to the rest of California. But go to Palm Springs, as
well, because we just have so much for people to see in the
State of California. And I think that we ought to approach this
on a bipartisan way to encourage tourism and support the
efforts of the President, who is trying to do the same thing.
I welcome our distinguished witness. She certainly has a
place with a lot to offer for tourists. I wish I could find
time to get back to Hawaii, but I spend all my time in
California, so I am not deprived of wonderful tourist
attractions.
I yield back the balance of my time.
Mrs. Bono Mack. I thank the gentleman from Beverly Hills,
and I, again, welcome him any time to Palm Springs.
But I do at this time turn our attention to our first
panelists, and we welcome Representative Hirono of Hawaii to
our committee, certainly somebody who understands this issue.
And to reiterate to Mr. Waxman, all of us are very interested
in bolstering tourism and doing what we can actually to help
the President be successful in this goal.
So welcome, Ms. Hirono. We are anxious to hear from you. We
will recognize you for 5 minutes at this point.
Just to remind Members, we do not plan on questioning our
colleague, so after she gives us her statement, she will be
free to go back to her busy day, and we will move on to the
second panel.
Ms. Hirono, you are recognized for 5 minutes.
STATEMENT OF THE HON. MAZIE K. HIRONO, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF HAWAII
Ms. Hirono. Thank you very much, and aloha, everyone,
chairman Bono Mack and Ranking Member Butterfield, and to all
of the committee members.
Mrs. Bono Mack. Excuse me. Make sure your microphone is on
and pulled towards you.
Ms. Hirono. Got it.
Mrs. Bono Mack. Thank you.
Ms. Hirono. Thank you. You would think I know this, but I
am usually on the other side.
Mahalo and aloha to all of you for giving me this
opportunity to participate.
Creating good jobs is a national priority, and one of the
strongest job-creating sectors in America is the visitor
industry. The travel and tourism industry is critically
important, of course, to the State of Hawaii, and I would say
that travel and industry is probably the number 1, 2, or 3
economic driver in just about every State in the country,
including, of course, Chairwoman Bono Mack's. And, in fact,
doing a little bit of research in your State, practically
900,000 people in California have jobs in this industry.
Tourism in Hawaii is our biggest economic driver,
accounting for 17.4 percent of the jobs in Hawaii. It also
accounts for almost 20 percent of our economy. That is over
145,000 jobs, 12.6 billion in 2011.
Nationally tourism has been one of our Nation's biggest
exports for years. In 2011, it supported 7.6 million jobs and
generated 3.5 percent of or GDP. That is $1.2 trillion. The
National Travel and Tourism Strategy released last week
recognizes the industry's importance to our Nation's economy.
It set a goal, as many of you have already articulated, 100
million international visitors by 2021. I applaud Secretaries
Bryson and Salazar and all of the task force members for their
work on this plan, and I commend President Obama for
recognizing and prioritizing travel and tourism as a way to
create jobs. The goals set by the President will take our
serious effort.
Last year the U.S. welcomed 62 million visitors from
abroad. That was a record number. So increasing that number to
100 million in the next 9 years will be a challenge. It is a
challenge that I know we can meet in a bipartisan way.
In 2010, Congress passed the Travel Promotion Act, which
created the Brand USA, which just recently launched its very
first campaign to promote travel to our country. This year we
passed legislation to improve our aviation systems and
infrastructure. So we are making progress.
I know that administration has worked to tackle visa
processing backlogs in places like China. China is a key
visitor market both for Hawaii and the United States, the rest
of the U.S. Over 54 million Chinese traveled abroad in 2010. Do
you know that fewer than 1 million of them came to our country,
and Hawaii welcomed some 62,000?
In September of 2011, Hawaii hosted the fifth annual China-
U.S. tourism leadership seminar--summit. At the summit Mr.
Qiwei Shao, who is China's highest-ranking tourism official,
said, quote, ``We hope the U.S. can bring more convenient visa
procedures and we exchange views on this.'' He went on to say,
``The goal in 2015 is for tourist flows between China and the
U.S. to reach 5 million,'' end quote.
We are totally missing the boat in this growing China
market, but we can do something about it and do it quickly.
Congress can act to cut red tape and streamline the visa
process for visitors from China and other growing markets. That
is why I introduced the bipartisan VISIT USA Act with
Representative David Dreier. Our bill with make commonsense
changes to our visa processes. These changes would expedite
visa processing to increase visitors while preserving U.S.
security. I want to emphasize that, while preserving U.S.
security. They are also focused on high-growth markets like
Brazil and India in addition to China.
Briefly, some of the bill's key points are we would want to
grant Chinese visitors 5-year rather than the current 1-year
multiple-entry visas. We are also conducting interviews by
secure video conferencing rather than requiring the Chinese to
travel the great distances to the five permanent consulates in
that country. And we would want to establish mobile satellite
consulates in cities of more than 1 million; increasing or
decreasing fees based on seasonal demand in our country; allow
for expedited visa reviewing. These commonsense reforms among
others included in the bill will help to implement our tourism
strategy.
This bill has a bipartisan companion in the Senate and has
been endorsed by a broad range of groups from UNITE HERE to the
U.S. Chamber of Commerce, to Americans for Tax Reform. And you
are going to hear from the U.S. Travel Association, who will be
also testifying today.
So boosting our travel and tourism industry will help our
economy create jobs. I am glad to have bipartisan cosponsors
for our bill, including Representatives Dreier, Berkley,
Blumenauer, Farr, Hanabusa and Hultgren. I hope all of you will
sign onto this bill and consider pushing us, moving us forward
quickly so that we do not continue to miss the vote--miss the
boat, I should say--we are not going miss the vote, that is
coming up soon--to miss the boat on attracting tourists who
want to come here particularly from China.
Just to give you the sense of what kind of impact this
would have on Hawaii, we get maybe 62,000 visitors from China.
With the kind of changes I have been talking about in this
bill, it has been estimated we can welcome 300,000 Chinese
visitors to Hawaii. They will spend $600 million, creating
potential for 6,000 jobs in Hawaii.
So I look forward to working with all of you as we go
forward in a bipartisan way. Mahalo, aloha.
[The prepared statement of Ms. Hirono follows:]
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Mrs. Bono Mack. Thank you very much for your testimony. We
appreciate your being here, and we will certainly take a very
close look at joining you on your bill. I appreciate that.
Thank you again, and at this point, rather than asking
questions, we will see you later on the floor for the vote.
And we would like to call Secretary Lamb-Hale to be seated
for the second panel, take a quick 30-second change.
Mrs. Bono Mack. Good morning. On our second panel we have
the Honorable Nicole Lamb-Hale, Assistant Secretary for
Manufacturing and Services, International Trade Administration
at the U.S. Department of Commerce.
Good morning, Madam Secretary. Thank you for coming back to
be with us again today. You will now be recognized for your 5
minutes. As you know, the lights will indicate when you need to
begin wrapping up at the 1-minute mark.
So please turn the microphone on, and bring it close to
your mouth, and you are now recognized for 5 minutes.
STATEMENT OF NICOLE Y. LAMB-HALE, ASSISTANT SECRETARY FOR
MANUFACTURING AND SERVICES, INTERNATIONAL TRADE ADMINISTRATION,
DEPARTMENT OF COMMERCE
Ms. Lamb-Hale. Thank you. It is a pleasure to be back. Good
morning, Chair Bono Mack, Ranking Member Butterfield, and the
members of this subcommittee. Thank you for the opportunity to
speak to you today on the National Travel and Tourism Strategy.
The Obama administration and the Department of Commerce
clearly recognize travel and tourism's importance to the
economy. This industry supports job creation, accounting for
$1.2 trillion in economic activity, and supporting 7.6 million
jobs in all States and territories. In 2011, 62 million
international visitors came to the United States and spent $153
billion. These expenditures supported over 1 million jobs.
The United States is highly competitive in the
international travel and tourism marketplace. We lead the world
in revenues derived from international travelers. However, the
world travel market is changing rapidly. Competition has
increased. From 2000 to 2010, the U.S. share of spending by
international travelers fell from 17 percent to 11 percent, a
more than 30 percent decrease in our share of the global
market.
Like the United States, other traditional tourism
destinations lost share during this same period, while Asian
and other emerging destinations dramatically increased their
market share. Many of our competitors recognize global travel
and tourism growth as an opportunity for increased trade and
job creation.
Given this new competitive dynamic, the United States must
harness the potential of travel and tourism to grow our
economy. To ensure we reach this potential, President Obama
issued an Executive Order earlier this year that established a
Task Force on Travel and Competitiveness. The task force
developed recommendations to promote domestic and international
travel to and within our country with the goal of increasing
the U.S. share of worldwide travel.
The task force, consisting of Federal agencies whose work
impacts the sector, developed the United States National Travel
and Tourism Strategy. Industry, congressional Members and other
stakeholders provided substantial input. Secretary of Commerce
John Bryson and Secretary of the Interior Ken Salazar cochaired
the task force. They submitted the strategy to the President
and released it to the industry and the public at a meeting of
the Congressional Travel and Tourism Caucus just last week.
The goal is simple, yet bold: Increase American jobs by
attracting 100 million international visitors, who we estimate
will spend $250 billion annually by the end of 2021. To
accomplish this we will promote the United States as never
before. This means communicating to the world that we welcome
visitors, and providing information about the ease of travel to
and within the United States. It means coordinating with the
marketing campaign of Brand USA, the nonprofit private
corporation established by the Travel Promotion Act of 2009.
And it means partnering with industry as well as State, local,
tribal and territorial governments to build campaigns around
activities and iconic places, from the Sequoia National Forest
to the San Antonio River Walk to the Outer Banks.
While keeping our Nation's security as the primary focus,
the Departments of State and Homeland Security will streamline
these applications and entry for legitimate travelers into the
country. They will do this through improvements in process,
technology, staffing and infrastructure.
The U.S. Government will continue to make strategic
investments in the transportation infrastructure to enable
safer and more efficient movement between destinations
throughout the country. This means supporting the program to
upgrade our national Air Traffic Control System and working to
promote improvements to our Nation's highways. The
administration will strive to provide world-class visitor
experiences to inspire repeat visits. This strategy also
proposes efforts to help small travel and tourism businesses,
including expanding access to capital and helping small
businesses gain the confidence to withstand demand volatility.
The Tourism Policy Council, the Federal interagency council
chaired by Secretary Bryson, will coordinate Federal policies
and programs to implement the strategy. Building on our
existing Office of Travel and Tourism Industries, we will
create a national travel and tourism office at the Commerce
Department to serve as a central driving force within the
government, and to provide the day-to-day support needed to
implement the national strategy.
We will also work with the travel and tourism industry to
collect and analyze data to support smart decision-making in
the public and private sectors. We will also develop metrics to
measure our progress and analyze results to improve
performance.
It is not just government agencies, of course, that promote
increased travel and tourism. We are working closely with our
private-sector partners as well. A key partner is Brand USA,
which launched its U.S. Tourism promotion program last month.
Commerce has committed to working with Brand USA to make its
campaign successful.
In closing, the implementation of the national strategy and
our work with private-sector partners will be crucial in
realizing travel and tourism's potential to create jobs over
the next decade. I look forward to continuing to work with
Congress to meet the goals set out for us in the Travel
Promotion Act and to ensure that the unique public-private
partnership it creates delivers on the full promise of this
vital industry as a job-creation engine.
Thank you for the opportunity to testify before you today,
and I look forward to any questions you may have.
Mrs. Bono Mack. Thank you very much, Madam Secretary.
[The prepared statement of Ms. Lamb-Hale follows:]
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Mrs. Bono Mack. You can clearly see from our opening
statements that the members of this subcommittee have great
pride in their districts. Whether it is Palm Springs, or the
beautiful North Carolina, or the fabulous Chicago, Beverly
Hills, Tennessee, there is a lot of great pride, and we are all
very, very proud of our districts.
It is not too often we get to speak about our national
parks in this committee, and I am happy to say that I represent
part of Joshua Tree National Park, and I am very honored to do
that.
So one of questions that I have is how do the offices
within Commerce market U.S. destinations? And do you pick
specific attractions or regions? Are there winners and losers?
Ms. Lamb-Hale. There are certainly not winners and losers,
Madam Chair. We are working very hard, under the strategy and
under the auspices of the Tourism Policy Council, to ensure
that the spirit of the Travel Promotion Act, which focuses on
lifting all the boats, all of our States, opportunities in
travel and tourism. So we do use data and research to figure
out the best places to promote the United States. We are
working very closely with Brand USA and their strategy to do
so, and we are making sure that we market and promote world
destinations as well as our urban centers. The idea is to
promote the entire United States and to not choose one State
over another.
Mrs. Bono Mack. Thank you.
You have said that we need to partner with State and local
governments to build these campaigns around activities and
iconic places. Who will choose in which projects to invest what
criteria should be used? For example, half of my district was
asking me a question the other day when I was out there about
how do we promote tourism, but they have no infrastructure yet
in place at all. Are they going to be disadvantaged compared to
the other half of my district, which is very focused and has a
great infrastructure in place currently to promote tourism? How
will you be picking and choosing there?
Ms. Lamb-Hale. Well, we won't be picking and choosing. What
we will be doing is working very hard with all the States that
are interested in helping to develop strategies to promote
their particular destinations. We will be working very closely
with Brand USA in the effort to ensure that we are targeting
the right foreign markets to bring visitors, international
visitors, into the country and to really build upon the fact
that we have great urban centers, but, of course, within a
range, a very short range, of distance there are rural
destinations that are very important and that can be meaningful
for the memories that you talked about.
And so I think that as we work together through the
interagency process, and with our State and local partners, and
the private sector, we will be able to lift all the boats.
There won't be a picking of winners and losers as it relates to
our States.
Mrs. Bono Mack. Thank you.
You also testified that the administration will focus on
fostering a skilled hospitality industry. Can you describe the
administration's vision on this point, and where is the
industry currently deficient?
Ms. Lamb-Hale. Well, I wouldn't say that the industry is
deficient. I think that there are opportunities for to us work
together with the private sector to do the kinds of things that
will create a world-class customer service and business
experience for the country. So that includes helping to train
small businesses, which comprise the largest percentage of our
travel and tourism businesses in the U.S., on strategies and
tactics to help to improve the visitor experience.
I think has we partner with our private sector partners and
with our Travel and Tourism Advisory Board, for instance, we
can put together training programs to help small businesses to
be successful and welcoming our visitors. We can certainly
focus, and I know that DHS has done this, on making sure that
the people on the front line at our ports of entry are trained
to be, as Congressman Butterfield said, to say thank you, and
you are welcome, and be welcoming to travelers.
So I think that, again, as we pull together in the
interagency and we work with our private partners, we can
ensure that the customer experience and the visitor experience
within the U.S. is the best that it can be so that we can be
competitive.
Mrs. Bono Mack. Thank you.
And is the Commerce Department concerned solely with the
total number of international visitors, or does it also have
goals for boosting tourism at the State level, within the--you
know, yes.
Ms. Lamb-Hale. We are working very closely with the
Department of Interior. We are focused on encouraging our U.S.
citizens to explore all that the U.S. has to offer. At the
Commerce Department, in particular at the International Trade
Administration, we are very focused on international visitation
and working with Brand USA in that regard. But as part of the
Tourism Policy Council, which includes the Departments of
Interior and other departments that touch this industry, we are
really looking at ensuring that when U.S. citizens travel, that
they consider staying home and looking at all that the U.S. has
to offer.
Mrs. Bono Mack. Thank you very much. I yield back my final
10 seconds and recognize Mr. Butterfield for 5 minutes for
questioning.
Mr. Butterfield. Let me thank the chairman.
The data shows that five U.S. States, I believe it is, New
York, Florida, California, Nevada and Hawaii, all together
account for some 93 percent of all overseas visitor arrivals,
and that is good. But I am concerned that the remaining States,
the territories and the District of Columbia combined receive
such a very small portion of the total. Clearly the authors of
the Travel Promotion Act felt the same way, as the statute
explicitly directs Corporation for Travel Promotion to, quote,
``ensure that international travel benefits all States and the
District of Columbia, and to identify opportunities and
strategies to promote tourism to rural and urban areas equally,
including the areas not traditionally visited by international
travelers,'' end of quote.
One of your main jobs as the primary department overseeing
this act is to carry out that duty. How do we help those States
that do not attract large numbers of international visitors? Do
you believe a unified national marketing strategy like Brand
USA, and you made reference to that, would give a particular
boost to these States, and if so, why?
Ms. Lamb-Hale. Thank you for your question.
The Travel Promotion Act, as you did state, does ensure
that as we look at promoting the United States. That we not
just promote the urban areas, but we also look at promoting
rural America. We are working very closely with Brand USA and
with our private-sector partners to ensure that that happens.
We are really--if you look at our strategy, we are very focused
within existing resources on how we can make sure that as we
promote the United States, these other opportunities to explore
rural America and some of our smaller States are taken into
account.
Mr. Butterfield. But is it true that 93 percent of
international travelers go to five States?
Ms. Lamb-Hale. You know, I don't have that information. I
can check on that and get back to you. But I would say that as
we implement the Travel Promotion Act, and as we implement the
strategy working with our private-sector partners, we are very
cognizant of the beautiful and iconic destinations that exist
around our country. And so our goal is not just to promote, you
know, our urban centers, but to look at other opportunities to
ensure that when visitors come, they can take into account and
take into consideration all of the opportunities that the U.S.
provides for travel and tourism.
Mr. Butterfield. Are regional partnerships more important
to these States that are relatively off the beaten path to
international visitors?
Ms. Lamb-Hale. I think that regional partnerships are very
important, and we are working--if you look at our strategy, we
are working at making sure that we include rural America in
those discussions and in that approach.
Mr. Butterfield. All right. They didn't cut on my clock, so
I am not going to abuse my time. That is all right, that is all
right. I am going to ask one last question, and then I will be
done.
In the year 2000, the U.S. share of international arrivals
was 7.5 percent of the world's total. By 2011, the U.S. share
was down to 6.6. Trade groups, executive departments and
congressional committees have cited this decline as a
motivating factor for a renewed Federal emphasis on
international travel promotion.
Ms. Lamb-Hale, one out of OTTI's main jobs--one of the main
jobs is to provide statistical support on travel and tourism to
the Department and to the various industries that make up
travel and tourism. As we seek to achieve the National Travel
and Tourism Strategy's goal of 100 million and $250 billion in
international travel spending by 2021? How do you intend to
measure this progress?
Ms. Lamb-Hale. Well, we are certainly working very closely
with the private sector to do that. We understand the
importance of data and research to the travel and tourism
industry, and we are looking for creative ways through public-
private partnerships to close any data gaps that there are so
that we can make sure that we use public and private resources
appropriately in the promotion of the U.S.
Mr. Butterfield. Thank you. I yield back.
Mrs. Bono Mack. Thank you, Mr. Butterfield.
The chair recognizes Mr. Olson for 5 minutes.
Mr. Olson. I thank the chair.
And thank you, Secretary Lamb-Hale, for coming today. I
greatly appreciate your time and not waste an opportunity to
talk about the Lone Star State.
Ms. Lamb-Hale. There you go.
Mr. Olson. We have a great slogan in Texas about our
tourism: Texas, it is like a whole other country.
Ms. Lamb-Hale. Ah.
Mr. Olson. That comes from our Governor's office. We have
got things to be proud of. We have got great diversity. We have
got the Piney Woods of east Texas, lots of hiking and lots of
fishing up there. We have got the central Texas prairies, the
lakes, the water sports that we talked about, get it all out
there and doing some tubing down the rivers. We have got the
hill country, more tubing down there; the River Walk in San
Antonio, which I think you mentioned in your testimony; the Big
Bend areas. It has got mountains, mountains in Texas. We have
got one that is 8,751 feet, Mount Guadeloupe. We have got the
Marfa lights out there, which some people think they are UFOs,
other people don't think they are UFOs, but go and see for
yourself. We have got the Panhandle Plains, ``limo skies,'' and
the best steaks, like premium steakhouse there in Buffalo Gap,
Texas. And finally, we have got, where I live, the Gulf Coast
of Texas, which stretches from the border with Mexico to the
border of Louisiana, beautiful beaches, lots of great fishing,
and home of the Johnson Space Center.
And so we have half the southern border with Mexico, and
what I am concerned about is Latin America is the fastest-
growing market for our economy, at least in Texas. We have got
robust cruise ship operation out of Galveston, Texas. In fact,
I went on that cruise with my family Christmas before last, and
we went down to Central America, the Caribbean and northern
part of South America. Now, I can assure you that the people on
that cruise--there were a lot--we have the blue passports, our
passports, but many, many people on that cruise ship had
different color passports, so they were on actual business
coming to Galveston, Texas, to get on a cruise ship to go down
to Latin America.
And we got three major international airports. San Antonio
airport, my colleague Mr. Gonzalez, that is his home airport;
Dallas-Fort Worth; and we have got Bush Intercontinental, where
I live; and maybe a fourth one. We have got a little debate
going on right now in Houston about Hobby airport getting some
international travel access down to Mexico, and the northern
part of Central America, and northern part of South America.
And so what I am concerned about is obviously we just have
a tremendous opportunity in Texas to grow. I mean, it is just
numbers for you. For example, the GDP of the Texas travel
industry was $23.4 billion in 2010. That is only lower than the
oil and gas segment and on par with agriculture. That is high
cotton in Texas. You are competing with the oil and gas
industry and the agriculture industry, the cattle ranch
industry. You have got something going on there, 23.4 billion.
What I am concerned about is that from 2000 to 2010, U.S.
Share of spending by international travelers fell from 17
percent to 11 percent, more than 30 percent decrease in our
share of the global market. The good news is we have, you know,
record $153 billion of U.S. Travel and international tourism,
but I am concerned about the decline there.
In your testimony you say that the decreased share of
international travelers was a result of more competition. And I
am concerned about 9/11 and how that has changed things, not
just for the airline industry. We tend to focus on that. But
also, as I mentioned, we have got people coming across, their
cars, from Mexico into my home State that want to be tourists
there, that they are having to go through changes down there on
the border. We have got the cruise ships. They have to go
through different procedures to get aboard the ship. That is
all good. But I am just concerned, was industry seeing a
decrease before the 9/11 terrorist attacks? I mean, like, what
were the numbers between 2000 and 2001?
Ms. Lamb-Hale. You know, I would have to get back to you on
that. I don't have those numbers handy. But I can tell you that
what--I can give you some sense of the competition and why it
is that as a result of that we have implemented and are
implementing the strategy.
After 9/11, of course, because of security concerns,
rightly so, we had to do some things to make sure that our
public, the American public, was secure. And we are now doing
that and promoting the United States.
I think that the competition and increased competition is
that there are other areas of the world to see. There is a
growing middle class and emerging economies, and they have a
lot of choices that they can make. So I think that the fact
that we are coming together as a government and for the first
time really actively promoting the U.S., I think that we will
gain the competitive edge that we all want to create jobs.
Mr. Olson. Yes, we need to do that, because I applaud the
idea of welcoming 100 million visitors, international visitors,
to our State. That is very important. But right now our States
have one hand tied behind their back, because they are
competing against other countries. I mean, my home State of
Texas, we have this advertisement program. I know we go to
other States. I have seen--back home I see my colleagues from
Michigan here, you guys are doing a good job.
Ms. Lamb-Hale. I am from Michigan, too----
Mr. Olson. There you go. I see those guys on my TV come to
Michigan, beautiful city, but we need help. I mean, how many
jobs do you think would be impacted if we get this 100 million
international tourists coming in? How many jobs we have right
here in the United States, any idea?
Ms. Lamb-Hale. Well, I can tell you what the statistics
were for 2011, and we can do some math, get a calculator out
and maybe extrapolate from that. But I can tell you that there
were 1.1 million total jobs supported by international
travelers in 2011. So if we can do the math--I went to law
school for a reason. So I don't know that I can do it in my
head right now, but there is a formula. I mean, we have a
formula. That is how we derived the goal. There is a direct
correlation between job creation and the exports that we
receive through travel and tourism by international visitors.
So I think that if we look at what happened in 2011, if the
Federal Government comes together with the private sector, and
we really make the push that the strategy suggests, I think
that we are going to see an enormous impact on job creation.
Mr. Olson. Thank you. And I am way over my time. Just
again, Texas, it is like a whole other country.
I yield back.
Mrs. Bono Mack. I hesitate to recognize the next Texan for
a Texas filibuster, but the gentleman from Texas is recognized
for 5 minutes.
Mr. Gonzalez. Thank you very much, Madam Chair. It is just
that we have so much to brag about, and rightfully so.
But quickly, thank you very much, Madam Secretary.
Let me ask you. I want to turn to the international visitor
for a lot of reasons. You told me that you want to promote,
obviously, what is going on domestically, and I understand
that. And with the recession we probably have more people in
the United States staying within the United States and visiting
San Antonio and other spots as opposed to those particularly
five States that the ranking member had pointed out. Those
figures come from the census--that is what I was checking a
minute ago with my staff--and in essence basically stated there
were, I think, five States. According to the U.S. Department of
Commerce, five States, New York, Florida, California, Nevada
and Hawaii, received 93.8 percent of visitors. That excludes
visitors from Canada and Mexico.
There are many, many variables that come into play as to
whether they are going to go to any of the other vacation
spots. Something that my colleague from Texas pointed out is it
is going to be the availability of just air transportation,
major airports. And if you are going try to get people going
from New York or whatever to other locales maybe once they get
here or whatever, you still need all sorts of direct routes to
some of those cities like San Antonio. And I am sure some of my
colleagues know exactly what I am talking about.
And where I am going with this is that my understanding is
that the administration, one of its goals is to coordinate the
efforts across agencies and departments to accommodate all of
those considerations so that we are working at truly what would
be the optimum.
You have already heard that we have security concerns. We
have, of course, just the accommodation of air routes and such,
all of that. What are we doing in order to get all the agencies
and departments on the same page to accommodate and encourage
international visitors?
Ms. Lamb-Hale. Well, what we are doing is, first of all,
developing the strategy. We developed the strategy that was an
interagency process. It was a task force led by the Secretaries
of Commerce and Interior. And all of these agencies that have
equity in this space have pulled together to put together this
strategy, and they are beginning to implement that strategy.
And that is something that we really haven't done as well
before.
I mean, we do have the Tourism Policy Council that has been
in place. We are rejuvenating that. We are making sure that
senior-level officials participate very actively to ensure that
there is coordination on the Federal level. Through the
creation of National Travel and Tourism Office at the Commerce
Department that I spoke about, that will really create a
central focus and really ensure that the coordination of the
strategy, the implementation of the strategy takes place.
And, you know, I wanted to mention, too, the issue of the
five States. You know, we have not promoted the United States
like we are planning to do, like we are doing now with Brand
USA. The people who are going to those States are going to
those States without the additional push from Brand USA and
from the coordination of the Federal agencies to really market
the United States as a whole. And I think as we do that, all
States will be able to benefit from international visitors
coming because we are going to go tell the story.
We haven't told the story effectively. Brand USA's
marketing campaign is fabulous, and it really focuses on all
that the country has to offer. I think that particularly
working together with the Department of Interior, you will
really see a boost in our promotion activities that will ensure
that we have the increased international visitors that we all
want to create jobs.
Mr. Gonzalez. And I think that is part of the formula.
The other thing is I am just asking you to take very
seriously that one provision there and goal of coordinating
between departments and agencies.
Ms. Lamb-Hale. Yes.
Mr. Gonzalez. There are some things you would be able to do
that are beyond your control, the strength of the American
dollar compared to another currency and such, making the United
States an attractive place to come; security and such. But
there is still a lot to be done.
Ms. Lamb-Hale. Yes.
Mr. Gonzalez. I have about a minute left, and quickly I
want to make a distinction. When I read this, I thought it was
just absolutely amazing. I don't know if you are making
distinction--and we have people from the tourism industry--the
distinction between someone who comes to truly visit, or
someone that comes here, and, of course, they are going to eat
at our restaurants, stay in our hotels, but they are here to
purchase things. That, to me, is a really high-value tourist.
So I am going to read you something from the Orange County
Register of March 12, 2012: In fact, Brazilians are spending so
much that flights with Brazil's top airline, TAM, originating
in the United States have had to carry more fuel to accommodate
the dramatically overweight baggage. New York. And I am sure we
can talk about Miami and other places.
Is there any distinction in making that kind of tourist--I
call them really a customer of the United States, truly export
in many ways--are you making any distinction to accommodate
that kind of commerce with visitors to the United States?
Ms. Lamb-Hale. Well, I think that there is no surprise that
Brazil is among the top destinations that we are marketing to
for the United States because of fact that statistics show that
they do spend quite a bit of money. It is interesting as we
look at the export opportunity, it is not--you know, it is
paying for the plane ticket, and it is coming in and buying,
you know, soda and clothing, et cetera.
And so I think as we approach this strategically, and we
use resources both public and private in the most efficient way
possible, we will be looking at areas that make the most sense
to market to initially.
I know that Brand USA, and I am sure Jim Evans will tell
you this, has a plan, a strategy, a rollout. And what you will
see is that countries where we have visitors who are those
high-value visitors that you described are going to be at the
top of the list.
Mr. Gonzalez. Thank you very much for your testimony.
I yield back. Thank you for your indulgence.
Mrs. Bono Mack. Thank the gentleman.
The chair recognizes Mr. Pompeo for 5 minutes.
Mr. Pompeo. Thank you, Madam Chairwoman.
Unlike the other Members today, I am not going to
shamelessly promote Kansas. I don't need to. If you have ever
seen a Kansas sunset, if you have ever had a chance to go hunt
and fish in western Kansas, or you have had a chance to visit
Kansas City and the wonderful amenities there, you don't need a
Member of Congress to sell you on it.
You may not need Federal trade promotion either. And that
is really--I want to follow up on what Mr. Gonzalez said. Tell
me about the metrics. There are so many dynamics, fuel price,
the dollar value. You talked about developing metrics. What are
the metrics against what you will measure the resources that
are being expended on this project?
Ms. Lamb-Hale. Well, certainly we are--those are in
development. We are working very hard to ensure that our
research and our data support what we are doing, the monies
that are being spent. I know that Brand USA has been working
very closely with us to ensure that we can measure our success.
We are very focused on public-private partnerships to help
us to develop the metrics and to be able to measure our
success, and so that is something that under the strategy we
are developing, it is under way. You know, there are
traditional metrics in terms of, as Mr. Gonzalez mentioned, you
know, spending patterns and, you know, can you make a direct
correlation between an advertising campaign in Japan and how
much is spent by Japanese visitors in the U.S.
Those are things we have to work through. I don't think
that we have the formula down pat now, but it is a critical
part of the strategy to conduct research and measure our
results. And so that is something that the Tourism Policy
Council will be working very closely on with our Travel and
Tourism Advisory Board and with Brand USA to make sure that we
can report to you successes in this regard.
Mr. Pompeo. Great. I appreciate that. I think it is
difficult. That is why I ask. I think it is hard to segregate
out what is really driving it. I appreciate, too, that we have
got lots of private money going to these folks who have an
enormous self-interest in making it successful for their
businesses and for their employees for job creation in America.
I appreciate the way that this program has been developed.
Really, one last comment, and then I will yield back my
time. I listen to the groups of different folks who are
involved in this, and whenever I hear ``interagency working
group,'' I become frightened, because I often think that often
means duplicative programs, confusion, incoherent policy
objectives, overlap and waste. So I would just--we will keep
following on this committee. I would urge you to do everything
you can to make sure that we are not committing the same
problems here--or having the same problems here that we have in
so many other places in Federal Government today.
Thank you very much for coming and joining us this morning.
I yield back.
Mrs. Bono Mack. I thank the gentleman.
And the chair recognizes Mr. Harper for 5 minutes.
Mr. Harper. Thank you for being here with us today, and we
certainly hope that you will come visit us in Mississippi,
where the food is always better. We can fry anything, just so
you know. It is a great place.
But we have many wonderful places to visit. We have the
beautiful Natchez Trace Parkway that runs from Nashville,
Tennessee, down to Natchez, Mississippi, on the Mississippi
River. Lots of great history there. We also have the Dixie
National Rodeo that is the largest rodeo east of the
Mississippi River. And surprising to some is the International
Ballet Competition is only held in one place in the United
States, and that is in Jackson, Mississippi, every 4 years, a
2-week Olympic-style event that is peopled with visitors from
all over the world. And so we hope you will take a chance to
come visit us sometime. And there are great things there. The
Mississippi band of Choctaw Indians, their ad campaign is
``Vegas with Sweet Tea.'' So many wonderful things there.
And we appreciate what you do. And we know this, that
tourism is important to every State. And it is affected in
great ways, particularly on group travel, by gas prices at the
pump. The high prices definitely have a big impact on planning
those trips, from bus tours to other groups that come in. So we
certainly hope that the administration will perhaps reconsider
its position on Keystone XL pipeline and look at ways that we
can affect that price at the pump directly, realizing that when
gas was $1.84 a gallon average, it is a lot easier to get folks
on board and to make trips. So that is a big impact.
But what I want to do is ask you a couple of questions, and
understand how did the administration set goals for the
strategy that you have discussed? And is the primary goal to
increase the number of international visitors to 100 million by
2012?
Ms. Lamb-Hale. It is by 2021.
Mr. Harper. I am sorry, 2021. If I could read, I could
figure that out.
Ms. Lamb-Hale. OK.
Mr. Harper. You know, 100 million is a nice goal, but how
was that figure arrived at? That is a very ambitious goal, a
good goal.
Ms. Lamb-Hale. It is ambitious, and we really want a
stretch goal. We don't want to set forth a goal that, you know,
is too easy to reach, because we want to work together and
really push to ensure that the job creation that we believe can
occur as a result of this industry is as robust as possible.
The Office of Travel and Tourism Industries in the
Department of Commerce does an annual forecast of international
travel, and that forecast shows that there is an increase of
4.2 percent per year through 2016 just based upon factors that
we look at in deriving that number. We believe that if we pull
together the way that we plan to do under this strategy, and
with the help of the private sector, we can push that to 5
percent per year. So once you get that number, we get to 100
million visitors, the math on the amount of money that is spent
is just based upon historic spending patterns per visitor.
Mr. Harper. Got you.
Ms. Lamb-Hale. So even me as a lawyer can figure out how to
do the math on that one.
Mr. Harper. Lawyers are people, too.
Ms. Lamb-Hale. We are people, too, we are. But certainly
that was the baseline. It was based upon the survey that we do.
And what we did was we really tried to push it so that--based
upon all the efforts that we are making.
Mr. Harper. How do you plan to coordinate your activities
with Brand USA to make sure there is no duplication or that you
are working together? And what do you see as the key
contribution of the Department?
Ms. Lamb-Hale. OK. Well, we will not duplicate the efforts
of Brand USA. Brand USA is a private-sector entity. They will
be putting together their plans and working very closely with
their private-sector partners to ensure that all of the
expertise that is available in industry can be brought to bear
to promote the United States.
The government will be focused on uniquely governmental
items, creating the environment for travel and tourism
businesses to thrive; ensuring that our borders, while
protecting them, are welcoming to visitors; ensuring that the
playing field is leveled in international fora as it relates
to, you know, ensuring that any restrictions on trade and
travel and tourism are eliminated. Only uniquely governmental
functions will the U.S. Government focus on.
Mr. Harper. Thank you for your time today.
I yield back.
Mrs. Bono Mack. Thank you, Mr. Harper.
Mr. Guthrie, you are recognized for 5 minutes.
Mr. Guthrie. Thank you. And I will promote Kentucky as we
move forward. We had a pretty famous event just a few--well, I
guess a couple Saturdays ago.
First of all, on the visa you got into, a couple of things.
I want to know Brazil has a reciprocal agreement, so whenever a
Brazilian citizen is required to come here, it also requires to
go there. And I had some friends get caught up in that. They
had to fly to Washington, DC, to go through the Brazilian
Embassy so they could get their visa to go to Brazil. And I am
thinking if we got Brazilians living outside of Rio and Sao
Paolo and Brasilia, it is a big country, if they wanted to come
here to go to Disney World, they are going to have to fly to
one of those. What an inconvenience it is, to kind of put it
into perspective.
And I want to say this, is that how is that going? Because
I know that it has to be--we have to protect ourselves from
people coming in, one, that want to do us harm, but, one, that
want to come in illegally and stay. And I give an example.
I have a young lady, or a friend, or actually almost like a
sister who came to study at Western Kentucky University from
Mexico as a graduate student and live with my parents. And so
she goes home, marries, has kids, and wants to bring them to
Disney World. And her husband--I have been to their business.
As a matter of fact her biggest complaint--I know it is on TV;
she will probably hear it--is that he will never leave his
business unless they go on vacation, because he is always there
working. And I have been there and seen it, and that is his--
second to her, his love. And they couldn't get a visa to come
in and for some reason in that into Mexico City. And they have
to go through a lot of cases. So it is not a complaint to them.
But it just seemed to me to be a clear case of somebody who
will come to the United States, take vacation, and go back, and
it just seemed very difficult to get that visa. As a matter of
fact, they went to Spain instead because they couldn't come
here. And so it is the kind of business they could afford to go
to Spain. That is the thing.
And so where is that in the process? We have to protect
ourselves, but we also--you will hear it from Disney folks in
town here that it is difficult to get people to travel back and
forth.
And then also when you show up--I am so glad when I land
here I have got the U.S. citizen line at the airport, because
not only do you get a visa--I haven't flown internationally in
a while, but last time I came in, it appeared to be hours of
waits to get in, whereas we had the U.S. citizen line or
permanent resident line to go through.
So those things about just the difficulty of getting a visa
to come here, and the difficulty of getting here once you get
here.
Ms. Lamb-Hale. Well, I certainly need to defer to my
colleagues at the Department of State and Homeland Security on
these topics, but I can tell you that the State Department is
working very hard to streamline visa processing. They
understand the issues around travel to our consulates around
the world and how that may create some inconveniences. They are
working hard to reduce wait times for qualified visitors.
So they are aware of the issue, and they have made a lot of
progress, and I am sure they would love to share that with you.
We can get you some information on that.
With respect to DHS, they recognize that we need to do
better at our ports of entry. They have the model ports program
that they have been working, and they have developed, through
that program, best practices that they are implementing across
the country, while still maintaining our security. I think
there is a lot that they are doing to improve the
infrastructure and the operations at our border crossings, and
I think that you will begin to see a difference there.
We have got a lot to do, and we have to protect our
national security. That is a very important part of what they
do. But they do recognize that there are some improvements that
can be made.
Mr. Guthrie. I absolutely think there should be no
sacrifice to immigration policy or national security to
streamline the process. But I can see if you come here once,
and you go out, it is just easier to go somewhere else. And
that is what I have heard. And with just a couple experiences.
Of course, they are anecdotal, but they are experiences.
One thing. There was a guy I met through a connection here
from South Africa that came to Kentucky a couple weeks ago. And
he said, boy, I never would have come here. He did the Bourbon
Trail. We have calcium in our ground, so the grass is a natural
supplement for strong bones, so our horses are stronger and
better. Also, it is a pure filter for water running through
limestone. This is limestone, so it filters, and iron falls
out, so if you put it and heat it up and put corn in it, it
does well. And the other thing is it also creates caves,
because the limestone washes out. So in my district is Mammoth
Cave. So he got to do those experiences. He says, wow, I never
would have gotten out of DC, New York, California had I not had
an opportunity to come here and made that connection that we
had.
I mean, what kind of strategy--I know that--I mean, quite
frankly, there are a lot of places I haven't visited because I
have gone to New York, Washington, California the same way, and
I wanted to go to other places. What kind of things are you
working on to get them out of the big--they are great cities, I
love them, but how do we get them in the heartland?
Ms. Lamb-Hale. Well, I think that really with the help of
Brand USA, we will be marketing the entire United States. I
think that people are going to those cities that you mentioned
because they have heard of them, right? We haven't really,
until now, through the strategy and with the partnership of
Brand USA, really marketed the country. And I think as we do
that, and we focus both on rural and urban areas, we will begin
to see a difference there. I think that we really, through the
efforts, the combined efforts, of our public-private
partnership, we will be able to expose international visitors
to all that the country has to offer.
Mr. Guthrie. One of the world's great travelers, Queen
Elizabeth II, loves coming to Kentucky. So that is my last
promotion of our great Commonwealth. Thank you.
Mrs. Bono Mack. I thank the gentleman.
And I want to thank you again, Secretary Lamb-Hale, for
joining us today for this important discussion on promoting
tourism in America. It is always great to see you and to have
you before our committee. I really look forward to working with
you to make this a huge success for all of us. So thank you
very much for your time, and I hope to see you again soon.
Ms. Lamb-Hale. Thank you, Madam Chair.
Mrs. Bono Mack. At this point we will take a 30-second
recess as we seat our third panel. If those third panelists
could please come to the table.
All right. We are ready to resume today's hearing with our
third panel. Again, each of our witnesses has prepared an
opening statement, and that full statement will be placed into
the record. You will each be given 5 minutes to summarize the
statement in your remarks.
Joining us on our panel are James Evans, chief executive
officer of the Corporation for Travel Promotion, also known as
Brand USA. Welcome.
We have Geoff Freeman, chief operating officer and
executive vice president of the U.S. Travel Association.
We have Debbie Marriott Harrison, senior vice president for
government affairs at Marriott International. Welcome.
Scott White. A special welcome to one of my constituents.
He is president and chief executive officer for the Greater
Palm Springs Convention and Visitors Bureau. Welcome.
And Patrick T. Long, Dr. Patrick T. Long, director for the
Center for Sustainable Tourism, Division of Research and
Graduate Studies at East Carolina University.
Welcome to each of you. You will be given the 5 minutes. To
help you keep track of time, please try to keep an eye on the
light. When the yellow light illuminates, you have 1 minute to
begin wrapping up your remarks.
Please make sure you bring the microphone close to your
mouth and turn it on. It is not just for us, but it is for the
stenographer and anybody else who might be listening or
watching.
So with this, we are going to begin. Mr. Evans, you are
recognized for 5 minutes.
STATEMENTS OF JAMES P. EVANS, CHIEF EXECUTIVE OFFICER,
CORPORATION FOR TRAVEL PROMOTION, A.K.A. BRAND USA; GEOFF
FREEMAN, CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT,
U.S. TRAVEL ASSOCIATION; DEBORAH MARRIOTT HARRISON, SENIOR VICE
PRESIDENT, GOVERNMENT AFFAIRS, MARRIOTT INTERNATIONAL, INC.;
SCOTT WHITE, PRESIDENT AND CHIEF EXECUTIVE OFFICER, GREATER
PALM SPRINGS CONVENTION AND VISITORS BUREAU; AND PATRICK T.
LONG, DIRECTOR, CENTER FOR SUSTAINABLE TOURISM, DIVISION OF
RESEARCH AND GRADUATE STUDIES, EAST CAROLINA UNIVERSITY
STATEMENT OF JAMES P. EVANS
Mr. Evans. Thank you, Madam Chairman, Ranking Member
Butterfield, and members of the committee, for inviting me here
today to discuss the ways in which Brand USA will help create
jobs by increasing the number of overseas visitors to the
United States.
Brand USA was established by the Travel Promotion Act in
2010 to spearhead the Nation's first global marketing effort to
promote America as a premier travel destination and communicate
U.S. entry and exit policies. Brand USA does not require a
single penny of taxpayer money to operate. Rather, the
organization is funded through a combination of private-sector
contributions and fees paid by international travelers from 36
visa waiver countries.
Congress created this private-public partnership knowing
that the U.S. had fallen behind in global competition for
overseas travelers. During the last decade the United States'
share of overseas arrivals stayed flat even as the global
travel market grew by more than 60 million people annually. And
what did this mean to our economy? According to the U.S. Travel
Association, had the U.S. kept pace with travel growth, we
would have welcomed 78 million more visitors and generated $606
billion in spending. That is enough to support more than
467,000 jobs, American jobs, annually.
These overseas travelers are the most lucrative for the
U.S. economy. On average they spend $4,300 when they visit the
United States, and that doesn't include business deals done
when travelers come to the United States to buy manufactured
goods. And every 33 overseas travelers support 1 U.S. job.
The challenge to recapturing our share is even greater as
the global travel market has become increasingly competitive
over the years. Until now the United States was the only
industrialized country that did not actively market itself to
promote international visitation. A 2011 McKinsey Global
Institute report estimates that the tourism sector could add
2.1- to 3.3 million jobs this decade. In order to reach that
higher number, however, the report says that we need to
increase the number of overseas visitors to our shores.
Brand USA is committed to doing its part to reach the goal
by developing a global marketing campaign on behalf of the
United States, with a strategy designed to promote all facets
of our great Nation. This month we launched our campaign in
three markets, in the United Kingdom, in Canada, and Japan. Our
decision to target these markets first was based entirely on
where we believed, through research, our advertising campaign
will achieve the greatest possible return on investment.
The campaign reflects insights gained from surveying
potential visitors to the United States, and what we found
wasn't all that surprising, but was sometimes difficult to
hear. Some felt we haven't been a very welcoming Nation in the
past recent years. Others felt that there were newer, more
exotic markets they were interested in visiting. And others
felt they had seen all they needed to see of the United States.
This research fed into our campaign message, inviting
travelers worldwide to discover this land like never before. We
are using television, digital advertising, signage, print ads,
and a robust social media strategy to reach our potential
visitors. And our Web site, DiscoverAmerica.com, features
destinations large and small, iconic and less known, from all
regions, both urban and rural.
We are also working with the Departments of State, Homeland
Security, Commerce, and Interior to better communicate our
Nation's evolving security rules, to address misperceptions,
and create a more welcoming environment to visitors.
Once the program is fully activated, we will have a better
idea of what to expect from a return-on-investment perspective,
but our goal in this inaugural year is to have a 3-to-1 return
on our marketing spend, and eventually, in 3 to 4 years, to
achieve a 20-to-1 spend.
I thank you for the opportunity to be here this morning to
testify. We greatly appreciate the support of this committee as
well as other Federal partners in the executive branch. We look
forward to working with you to ensure that our success leads to
the creation of much-needed American jobs. I thank you for your
time. I look forward to answering any questions you may have.
[The prepared statement of Mr. Evans follows:]
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Mr. Evans. And, Madam Chair, I have a 2-minute video at
some point in time if you would like to take a peek at it. If
you have time.
Mrs. Bono Mack. Go ahead. We are prepared when you are.
Mr. Evans. Wonderful.
[Video shown.]
Mrs. Bono Mack. Thank you. Is that on your Web site?
Mr. Evans. It is on our Web site. That again, just a
reminder, is not an ad. Obviously, it is too long. But it is a
promotional piece we use. But all the content in every ad we
have comes from that video.
Mrs. Bono Mack. Well, I thank you. It is well done. And I
think we all will be singing ``Land of Dreams'' all day long.
Mr. Butterfield. Was that a 1959 Cadillac I saw in that?
Mr. Evans. It was a Cadillac, yes.
Mr. Butterfield. 1959?
Mr. Evans. Yes. It is not mine, I promise.
Mrs. Bono Mack. All right. And Mr. Freeman, a tough act to
follow, but you are recognized for 5 minutes.
STATEMENT OF GEOFF FREEMAN
Mr. Freeman. You can't watch that video and not get excited
about the new face that America is putting out there and the
invitation that we are sending to travelers around the world.
Thank you so much for hosting today's hearing. We greatly
appreciate that as you talk about your various destinations,
and all the opportunities that are there, your unique
understanding that it is not just fun, it is also big business.
It is an opportunity to drive your local economies. And that is
why the travel industry wishes to partner with you to help
create good American jobs, the good American jobs that we are
all seeking right now to turn this economy around.
The travel industry supported 14 million American jobs last
year, but as Jim said, McKinsey estimates this industry could
add an additional 3 million jobs over the next decade. To do
that we have to work together to remove barriers to travel, and
we are excited to work with you to do that on both the
international front as well as the domestic front. And if you
don't mind, I would like to walk through both of those sides
and suggest some of the things that we need to address in order
to welcome more travelers to our shores and encourage people to
travel within the country.
On the international front, travel is our number one
export, generating $153 billion last year alone in spending.
This is an element of our industry that we absolutely must
promote. To do that we obviously need a secure and efficient
visa system, our entry process must be welcoming, and our
promotion must correct a global misperception that America is
not as welcome as it might have been before. We see this as
three links in the travel chain, all of which must work
together, none of which being more important than the other.
Let us begin with the visa process. Visa wait times for
some time over the past decade have been a great barrier to
travel to the United States, often exceeding, in some
destinations around the world, more than 100 days just to
receive an interview. We congratulate the State Department on
making great strides in recent months in reducing those wait
times in Brazil, in China, and elsewhere around the world.
The question and the challenge for all of us right now is
how we make sure that these changes, these improvements can be
sustained over time. We have several recommendations that we
look forward to working with you to ensure that we can maintain
these visa successes.
Number one, we encourage you to codify a 10-day visa wait
time as a standard around the world. Two, we need to direct the
State Department to tie visa personnel staffing levels to meet
this standard. Number three, direct the State Department to
pilot the use of secure videoconferencing technology in large
countries like Brazil and China, where people don't have access
to consulates. And finally, we need to look for opportunities
to expand the Visa Waiver Program, which is included in
bipartisan legislation that exists both here in the House and
in the Senate.
The second area that we have to address is obviously the
entry experience. The entry process right now suffers from too
few agents to meet the considerable demand that we have to come
here. Several things that could help us address this issue
include establishing a passenger wait time standard of no more
than 20 minutes; extending the reach of current staffing
resources and expanding the use of global entry; and finally,
setting metrics to measure the customer service performance of
CBP officers at our airports.
The final thing, as Jim has focused on on the international
front, is effective promotion. This committee led the way for
TPA's passage. TPA's passage will drive billions in new
spending and support tens of thousands of jobs in our country.
We need your help in protecting and promoting the Travel
Promotion Act as we move forward, and we will obviously have an
opportunity at the end of its authorization to determine its
effectiveness over that period of time.
Switching over to the domestic side, we also have
opportunities there. We certainly have opportunities to improve
our air travel experience, where many travelers today are
avoiding travel because of the hassles associated with that
experience. We encourage you to take a hard look at TSA, which
was mentioned earlier, and necessary reforms that need to take
place there.
We also need to look, though, at another potential barrier,
and that is language or policy from Washington that could
discourage travel. The recent GSA scandal, where individuals
acting inappropriately sullied the hardworking men and women of
our industry, causes our industry great concern, as it does you
as well. OMB recently issued guidance to establish greater
oversight in reporting. The travel industry supports these
efforts from OMB. But OMB also suggested an arbitrary 30
percent cut in travel that neither we or Congress should
support.
Travel should be based on its merits, not on arbitrary
mathematics. We welcome the opportunity to work with Congress
and the administration to ensure that legitimate Federal
conferences are not unnecessarily canceled, and that
responsible Federal travel can still take place. We look
forward to being your partner in creating American jobs and
encouraging travel to and within this country.
Thank you.
Mrs. Bono Mack. Thank you, Mr. Freeman.
[The prepared statement of Mr. Freeman follows:]
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Mrs. Bono Mack. Ms. Harrison, you are recognized for 5
minutes.
STATEMENT OF DEBORAH MARRIOTT HARRISON
Ms. Harrison. Good morning, Chairman Bono Mack, Ranking
Member Butterfield, and members of the subcommittee. I am
Debbie Marriott Harrison, senior vice president for government
affairs for Marriott International, and I am happy to be here
today. I am proud to be able to report largely positive news
from Marriott and the travel industry on this subject.
I initially want to second the recommendations of my
colleagues and friends from U.S. Travel Association and Brand
USA that are here with me on the panel today, and thank them
for being here. Marriott fully supports the work of these
organizations.
My company is celebrating its 85th anniversary this year.
Marriott has humble roots that run deep here in Washington, DC.
In 1927, my grandparents opened a nine-stool root beer stand on
14th Street after moving to Washington from Utah. Thirty years
later, they opened their first hotel near Reagan National
Airport. My father stepped down in April as the CEO after 60
years of service. He oversaw Marriott's evolution into one of
the world's leading hospitality companies. We now have over
3,700 hotels worldwide, with 18 brands in 73 different
countries.
Marriott is proud to be expanding and doing its part to put
Americans back to work. We will have 330,000 associates around
the globe by the end of this year, with 212,000 of those
positions here in the United States. I am happy to report that
we expect to hire some 50,000 people this year in this country.
Many of those jobs will come from new hotel construction. For
every five hotel rooms that we add to our system, we create
roughly three jobs.
One of Marriott's core values is to take care of our people
and cross-train and promote from within. We offer opportunities
to a broad swath of U.S. workers, particularly women,
minorities, and immigrants, and provide meaningful career paths
with incredible upward mobility. Over half of our general
managers rose from the hourly ranks, and they have worked for
us for an average of 24 years.
Congress can help us create additional quality jobs by
promoting the growth of travel and tourism. In 2011, we were
pleased to see our business rebound, but there is still a lot
more work to be done. We are trying to capitalize on the growth
of middle classes in emerging markets like Brazil, India, and
China.
Marriott is ready to offer a warm welcome to guests from
around the world. We have 3,100 domestic hotels and want the
U.S. to capture the greatest possible share of the growing
global travel market. Brand USA has begun the marketing
campaign that will accomplish that, and I want to offer my
thanks to you, Madam Chair, and to several of your colleagues
on the subcommittee for your votes supporting passage of the
Travel Promotion Act that led to the creation of Brand USA.
Marriott has kept its promise to support this public-
private partnership. We have made a million-dollar cash
investment in the organization, supported by a $2 million
pledge of in-kind contributions. We see great potential in
Brand USA's marketing work. We would appreciate your continued
support of this important campaign.
We also need to ensure that international travelers are
able to enter the U.S. as easily and quickly as security
allows. We were thrilled to see the administration unveil its
National Travel and Tourism Strategy last week. The strategy
contains a number of concrete proposals to achieve our
international visitation goals.
We still need Congress to bolster the administration's
efforts. Marriott urges members of the subcommittee to support
passage of reforms to our visa and entry process. Bills being
championed by Congressmen Heck and Quigley in particular offer
an easy means to increase the number of inbound international
visitors and increase domestic economic activity. In fact, just
yesterday the JOLT Act was introduced into the House that
combines these two bills and is a companion bill to the House
and the Senate. We would ask for your support for the JOLT Act.
Finally, with respect to domestic travel, I wanted to echo
some of the comments made by my colleague Geoff Freeman. As we
all know, the GSA has been scrutinized for the over-the-top
meeting that they had in Vegas in 2010. We understand and agree
with the expectation of the American public that nonessential
spending be cut from Federal agency travel budgets. Marriott
urges Congress to take appropriate, responsible actions to
accomplish that task.
Inflammatory and reactionary rhetoric about wasteful
Federal employee trips has prompted the cancellation of
numerous legitimate agency meetings. This hurts our business.
In the few weeks since multiple congressional committees
excoriated the GSA, Marriott has seen approximately $4 million
in cancellations of signed contracts with agencies from across
the Federal spectrum. The number of cancellations is growing
daily. Several examples of these cancellations are in my
written testimony. The loss in government business may
translate to lost jobs at Marriott hotels.
Congress and the administration should pursue policies that
preserve the ability of Federal agencies to hold appropriate
meetings, while strengthening oversight to ensure that those
events are conducted according to the rules. Marriott wants to
continue to compete for the opportunity to provide Federal
agencies with quality meeting spaces at a good value.
I will conclude by saying that the services Marriott and
its employees provide cannot be automated or shipped overseas.
As a result, the growth of our company and industry represents
a major opportunity to boost domestic employment. We hope
Congress will see the value in seizing opportunities to boost
travel and tourism in the United States as part of its broader
agenda to put Americans back to work.
Again, thank you for this opportunity to share Marriott's
job-creation strategy with the subcommittee, and I look forward
to answering your questions.
Mrs. Bono Mack. Thank you, Ms. Harrison.
[The prepared statement of Ms. Harrison follows:]
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Mrs. Bono Mack. And, Mr. White, welcome. And you are
recognized for 5 minutes.
STATEMENT OF SCOTT WHITE
Mr. White. Thank you. Chairman Bono Mack, Ranking Member
Butterfield, and members of the subcommittee, thank you for the
opportunity to testify today on our destination, Greater Palm
Springs, the oasis in the California desert.
It is an important industry for us. It is the leading
industry for our destination, creating over 24,000 jobs, and
producing over $2.1 billion in economic impact. And it was very
nice to see the pride everybody has in their different
destinations and how they talked so eloquently about the
reasons why we should visit their destinations.
Prior to Palm Springs, I spent time in both Phoenix and San
Antonio and was able to see firsthand the different dichotomies
that happen with international visitation into a destination,
and I encourage all of you to work with your State offices or
your CVBs to go on the road and take that passion and maybe
attend Pow Wow, World Travel Market, ITB and see firsthand what
we are competing with on a global basis. We were fortunate this
past year to bring some mayors with us to Pow Wow, and I think
it opened a lot of eyes. It certainly did help us for our
destination to show that we are competing globally.
And for our destination, it really does affect the small
business owner. We have over 1,300 partners that work with us
on a daily basis to really try to keep their employees
gainfully employed and really dedicated to the passion that
they have, which is this industry.
We are a seasonal destination, and we really see fluxes
between high season and low season. And our low season is the
summertime. And summer for us really is an opportunity for
international visitation. We see travelers from the U.K., from
Germany, from all over the world that come, and they are very
interested in our destination because of our national parks,
Joshua Tree National Park, Mount San Jacinto State Park. And we
encourage you to support and really work with the National Park
System to make sure that those parks are fully funded and fully
have the opportunity to create the enhancements they have and
to grow, because that is a big driver for our destination and
many destinations around the country.
We are very fortunate to have a lot of growth in the past
year. This first quarter we have seen growth in occupancy of 12
percent. Occupancy is up 6 percent, RevPAR is up 12 percent,
ADR is up, and we are starting to see our businesses continue
to add jobs back into the destination.
It is vital for us to have this relationship with Brand
USA. We do not have the budget, or the resources, or the
manpower to reach the emerging markets that we have identified.
Our number one markets are Canada, United Kingdom, Germany,
Australia, and France; however, we see that there is pent-up
demand from China, India, South America, and many other
destinations that are interested in our destination, but we
cannot communicate to them nor have the resources to really get
that message across about the destination.
And I think we talked a lot today about jobs and the
opportunities that it brings not only on the economic impact,
but my experience has been when I travel abroad, and we have
international visitors that come into our destinations, whether
it is the Alamo, at the River Walk, or it is Phoenix going to
the Grand Canyon, or for Palm Springs visiting Joshua Tree for
their first time, it really breaks down the barriers that the
people had about their perceptions of this destination. I can't
tell you how many times international travelers would come to
the destination with this perception that we are this country
that is not welcoming to international visitors, and once they
meet our partners, they explore our destination, they have an
opportunity to meet with us, have a relationship, develop
friends and create these acquaintances that really not only
impacts us as a destination, but impacts our entire country.
So we are very excited to be partnering with Brand USA.
What it brings beyond marketing, I think, is an opportunity to
reinvite people to our destination, reeducate them about the
opportunities here. And we have found, and I have found through
my experiences working at CVBs, both, again, in Phoenix, San
Antonio, and in Palm Springs, is that when we have these
opportunities to invite these individuals to our destination,
they are not only coming as a consumer to spend money and shop
and have a good time, but they are also business owners. They
are also looking for opportunities to expand. They are also
looking for opportunities to invest. And we are seeing more of
that.
So this is a great opportunity and tool for our country,
our destination, and for us as a community to really work
together to get the message across that we are a vibrant
community, we are a welcoming community, and we have a lot to
offer.
So the services and support that Greater Palm Springs
provides to our partners and community are vital to our
destination's economy. We appreciate your time today and
opportunity to share our viewpoint. We hope Congress recognizes
the important of tourism in the United States and will support
programs that will increase travel and ultimately put more
Americans back to work.
Thank you very much.
Mrs. Bono Mack. Thank you, Mr. White.
[The prepared statement of Mr. White follows:]
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Mrs. Bono Mack. Dr. Long, you are recognized for 5 minutes.
STATEMENT OF PATRICK T. LONG
Mr. Long. Well, I do believe that the Travel Channel missed
a great opportunity today not being here to film all of your
respective comments about your States.
Chairman Bono Mack, Ranking Member Butterfield, and members
of the committee, I do appreciate sincerely the opportunity to
make comments today.
My name is Pat Long. I am the founding director of the
Center for Sustainable Tourism, now located at East Carolina
University. We are the only such research center in the
country, and we now host the first and only interdisciplinary
Masters of Science graduate degree, a master of science in
sustainable tourism.
I want to acknowledge and compliment all of those who have
worked so hard to develop this national travel and tourism
strategy, particularly John Bryson and Ken Salazar. And I am
speaking today on the subject of sustainability in tourism, and
that means balancing profitability with social and
environmental responsibility. And I would also like to direct
some comments to rural tourism as well.
Let me begin my comments by stating that there is nothing
more unsustainable than a bankrupt business; nor is there a
tourism destination that I am aware of in the country that
attracts visitors with polluted water and air, with a trash-
infested beach or mountain, that has poor stewardship of its
environment or natural resources, has offensive or no
hospitality, that destroys its community's sense of place, and
that treats its employees and the residents of the region with
disdain.
The move to sustainability in our Nation's tourism industry
recognizes that economic gain and job growth quickly go away if
the tourism product is not protected. Thus, I offer you a
working definition of sustainable tourism. It should contribute
to a balanced and healthy economy by generating tourism jobs,
revenues, and taxes, while protecting and enhancing the
destination's social, historical, cultural, built, and natural
resources for the enjoyment of both residents and visitors.
Why do companies, why do destinations want sustainable
tourism? Well, it decreases their costs, it improves their
profits, creates greater brand recognition, enhances their
reputation, increases market share, increases employee loyalty
and cost savings, contributes to the overall well-being of the
community, and improves relationships or meets regulations with
government entities.
Now, I understand that jobs are paramount in the thinking
of many of us, but tourism will not be considered an acceptable
rural economic development strategy if it does not serve the
needs of local residents in both preserving and honoring what
is held most dear, and that is their community and those
elements and components that contribute to their sense of
place.
For just a moment I would like to have you think about the
opportunity of hosting a substantial number of travelers from
Europe, but these travelers want to come to your State because
they would like to have a sustainable travel experience. Now,
that means they want to have a green team, but no greenwashing.
They want green accommodations built to the highest standards
of green building. They want locally grown foods, organic
foods, foods that are palatable to those that have intolerance
to certain food types. They want tour operators who provide
educational and responsible nature-based, cultural and historic
experiences. And they want to travel through rural regions or
destinations, places with character and places with a sense of
place.
Now, if that question was directed to Congressman
Butterfield about North Carolina, I suspect he and his staff
would note the Proximity Hotel. That is the Nation's first
LEED-certified at the platinum level property in the United
States. It has cut its energy use by 40 percent, its water use
by 30 percent. Its elevator, when it descends, generates energy
that feeds back into the system. It has over 100 solar panels
on its rooftop.
Their staff would talk to you about Mother Earth Brewery
and the Chef and Farmer in Kinston. Chef and Farmer is a farm-
to-table food property, a high-end restaurant. Mother Earth
Brewery is what it is, and it is one of the most attracting
entities to the town of Kinston. We have the Roanoke River
Partners. We have got Beaufort, which is the coolest small town
in America, and currently working with the center to become the
Nation's first fully carbon-neutral, sustainable rural
community here in our country.
In summary, I just want to say that I think sustainability
should be an ethic and a value with all aspects of the tourism
industry, and should, in fact, be reflected within our national
tourism strategy. All of the Federal agencies represented on
the interagency council have some type of sustainable
initiatives and/or sustainability office.
And finally, rural communities throughout the country, in
addition to our gateway communities, should be encouraged to
plan thoroughly to effectively use their history, culture, and
natural resources to develop a tourism industry that is
acceptable to their community.
My thanks.
Mrs. Bono Mack. Thank you, Dr. Long.
[The prepared statement of Mr. Long follows:]
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Mrs. Bono Mack. And I will recognize myself for 5 minutes
for questioning.
And I just want to start by saying that it is clear that we
all share a very strongly held belief that USA is the number-
one brand in the history of the world. But I would like to ask
my first questions to Mr. White.
Have you already had interaction with CTP or Brand USA as
of yet? If yes, how would you describe that interaction? And if
not, what is your understanding of how Brand USA will assist
our tourism campaign back home?
Mr. White. We have had interaction with Brand USA. We were
fortunate to be involved on many different fronts. I think they
have really reached out to try to gain insight from all
different destinations.
The research that they have conducted shows exactly what
Dr. Long had talked about, is that the international traveler
is looking to get beyond the gateway cities. The international
traveler is very savvy. They know how to use the Internet. And
the tour operators, they know how to find the niche markets.
And I think it is an opportunity for us to not only expand upon
the opportunity we have to reach those international
destinations, but more importantly for us, it is the emerging
destinations like a China, and India, or South America that we
haven't been able to reach as we have in the past through the
Internet that they have, the social media they are going to
have, the ambassador program they are going to have. And so
they are relying on our assets and the programs that we are
creating to partner up with what they are trying to create,
because they can give the message, but we have to deliver the
product for that person to experience. And we want to make sure
we are delivering the right product with our partners as well.
Mrs. Bono Mack. Do you have any of the fears that a number
of the Members have sort of alluded to about picking and
choosing winners? I have asked the question of the Secretary
also. Are you worried that they are going to be picking and
choosing?
Mr. White. No. I have been in this industry my entire life,
and the one thing that I have noticed, and this happens at a
regional level as well, we see that when we just launched our
brand last week and we show a video and people start to become
concerned, I wasn't in the video, am I going to be realized?
And it happens as well.
This organization is really trying to get the message out
that this country, this destination is in a brand new day. It
is going in a new lifecycle. There is a new environment here.
And the individual is going to seek out, through the Internet,
through the different avenues, looking for that information. If
they are going to look for Palm Springs, it is incumbent upon
me to make sure that my Internet, my information is connecting
emotionally with that particular person.
So I can't put the entire burden on Brand USA to say, you
need to represent me as a destination. I just want you to, say,
consider the United States before you consider Dubai, or Japan,
or other destinations if you are coming from the U.K. Or
Germany, so at least I can get my foot in the door and really
start to compete for that business through a Joshua Tree or
Mount San Jacinto.
So we really want to emphasize that their role is that they
cannot impact everybody specifically all the time 100 percent,
it is physically impossible, but really want to change the
perceptions that people have internationally about our
destination to give me the opportunity then to sell my product
that we have.
Mrs. Bono Mack. To compete within----
Mr. White. Exactly. Give me that first edge.
Mrs. Bono Mack. That is terrific.
Do you see any issues that fall within the Congress or the
administration's domain that must be addressed to facilitate
the attraction of and travel by international visitors?
Anything else other than Brand USA that you would like for us
to do now to help?
Mr. White. Well, Geoff talked about this as well.
Obviously, we need to be easy to do business with. It has to be
easier to get a visa, it must be easier to get through customs,
it must be easier to get through TSA. If they don't have an
experience that is positive as they go through the process, and
it is easy to get here, and it is not time-consuming and
overburdened, they are going to other destinations that are
more welcoming in that regard. So even though we may have a
great campaign that says that we are a welcoming destination,
we need to prove that as they come through the process at the
airports, at the different gateways into our country.
Mrs. Bono Mack. Thank you.
Ms. Harrison, you testified that Marriott has already
invested both funds and in-kind contributions with Brand USA.
Can you describe your interaction with Brand USA and how you
see that relationship evolving to be the most beneficial?
Ms. Harrison. We work very closely with Brand USA and with
U.S. Travel Association with Geoff Freeman also. And we are
very, very happy that we have been able to contribute to the
Brand USA.
If you look at the statistics, just take China for example,
by the year of 2030, 130 million Chinese are expected to travel
to the United States. They spend on average $7,000 a trip. By
partnering with Brand USA, hopefully we can get more Chinese
visitors to come to the United States, to go to Vegas, to go to
places like that instead of Macao and Australia where they are
currently going to. And if we get just 10 percent of that
number that is expected to come to the United States, we would
have to build new airports, put new gates on, and we would
create a number of new jobs. So it would be very exciting.
So we are very excited about our work with Brand USA to get
more international travelers to the United States.
Mrs. Bono Mack. Thank you. That is awfully good to hear.
Mr. Freeman, you recommended adding countries to the Visa
Waiver Program. What are the impediments that you see to
approving a country to the list?
Mr. Freeman. The great aspect about the new Visa Waiver
Program that is strongly supported by the Department of
Homeland Security is that putting countries into this program
actually makes America more secure. We saw that with the recent
additions of Eastern European countries, as well as South Korea
in recent years.
Right now there is a barrier to further visa waiver
expansion due to the creation or the implementation of what is
considered a biometric exit system. We need to address that
issue. There is legislation that exists to address that issue
so that we can target countries like Brazil that meet our
standards, that we can begin to have a conversation with them
about increasing their security, their cooperation on lost and
stolen passports and other issues to make America more
competitive.
As was mentioned earlier, as South Korea was entered into
the program, we have seen upwards of a 40 percent increase in
South Koreans coming to the United States. We can expect that
and greater from Brazil and other countries if we put the right
policies in place to get them into that program.
Ms. Bono Mack. Thank you very much. My time has expired.
Mr. Butterfield, you are recognized for 5 minutes.
Mr. Butterfield. Let me thank the chairman and thank the
five of you for your testimony today. I have been listening
very carefully, and it has been very informative. I thank you
so very much.
I listened with great interest to the testimony of Ms.
Harrison. Ms. Harrison, when I was a youngster--I live in North
Carolina--twice a year my family would drive from North
Carolina to New York City, and we would come up what was called
the Shirley Highway. They didn't have 95 or 395, it was the
Shirley Highway. In order to get to New York City, you had to
go across the 14th Street Bridge on up to New York Avenue and
make a right turn, and right on through Baltimore and up to New
York City. It was a 12-hour trip. Today it is 8 hours. But we
would always break our trip at your grandparents' hotel.
Ms. Harrison. Thank you.
Mr. Butterfield. It was $19 a night. I want you to remember
that. It was $19 a night, and as a youngster I thought that was
so much money to be spending for a hotel. But I have great
memories of staying at that property. So welcome to the
committee, and thank you for your contribution to this space.
Ms. Harrison. You are welcome. And thank you for being such
a great customer.
Mr. Butterfield. Yes. That must have been in 1958, 1959, I
suppose.
Ms. Harrison. It opened in 1957. Hopefully, you also
stopped at some Hot Shoppes along the way, along the turnpike.
Mr. Butterfield. We did. I was born in 1947. So, yes, I was
about 11 or 12 years old. I remember it so well.
Let me direct my question to you, Mr. Freeman. Thank you
very much for your testimony. I want to talk about highway
tolls. I don't know if that is something that you pay much
attention to, but it is a real hot issue in my State.
My State department of transportation recently announced
plans to toll Interstate 95. That highway is one of the most
heavily traveled interstates in the entire country. And it just
so happens that that interstate highway runs right through my
congressional district, and so I am opposed to it. It would
cost, we are told, $19 for a typical car to travel from the
Virginia border to the South Carolina border through our State.
I know this will impact my constituents in my district, and
they have expressed frustration over this tolling plan, and so
I have introduced a bill to try to deal with that.
In addition to North Carolina's tolling plan, there have
also been talks about tolling Interstate 95 in Virginia, our
neighbor to the north. And I suppose that that toll could cost
as much as $19 or $20. So when you put the $20 in Virginia
together with the $20 in North Carolina, that is $40 for a
tourist to travel from the New England part of the country
perhaps down to Disney or to Myrtle Beach or Charleston, some
of the Southern destinations. That is $40, not to mention the
cost of a truck, a commercial vehicle, to make that trip. And
then when they return back to their point of origin, that is
another $40. That is $80 in tolls that is added to the family's
budget, and I am fearful that this may discourage to some
extent our tourism traffic.
In your opinion, how does tolling impact tourism, if you
have any words of wisdom on that?
Mr. Freeman. Well, Mr. Butterfield, I think your comments
are valid and well taken. When you look at travel in this
country, about 85 percent of it takes place by car. So it is
certainly an issue we need to address. We have a significant
infrastructure challenge in this country. Certainly, our
infrastructure is falling behind that of other nations around
the world. Our own civil engineers give our roads a D-minus
when it comes to infrastructure.
We also lack a way to pay for the necessary reforms. So we
would look forward to working with you and others in finding a
long-term and sustainable funding model for improving the
Nation's infrastructure. Tolls may or may not play a role in
that space, and we have not done any research to date to see
the effectiveness of--or the effect the tolls have on the
decision to travel. But what we do know is we have to take our
infrastructure weaknesses seriously and make some of the
improvements that are necessary.
Mr. Butterfield. And as State budgets begin to get
strained, this is going to be a problem even more in the out
years, you know, how to maintain interstate highways. Do you do
it with tolling, or is there some alternative mechanism for
doing it?
Mr. Freeman. Absolutely.
Mr. Butterfield. Dr. Long, you are from the eastern part of
North Carolina. I am sure you have heard this debate. And I am
right squarely in the middle of it. And certainly I understand
the importance of planning for the future, but I also
understand the strain that is being placed on tourists and
local families. Can you help us with this?
Mr. Long. I do not have the expertise to respond in a
really credible way at the moment, but it is a topic that is on
our radar screen and that we are collecting information as we
speak to better understand the various aspects of that issue.
Mr. Butterfield. And you can certainly appreciate the
interests that have to be balanced in making this decision.
Mr. Long. Yes, we do.
Mr. Butterfield. Again, Dr. Long, I was very interested to
hear about how various businesses in the travel and tourism
sector have taken to an ethic of sustainable tourism, not just
because it is the right thing to do for the environment, but
also because certain steps can save a great deal of money even
in the short to medium term.
Is my time up? All right. I yield back.
Mr. Harper [presiding]. The gentleman yields back.
The chair will now recognize the gentleman from Texas Mr.
Olson for 5 minutes.
Mr. Olson. I thank the chair.
And welcome to the witnesses. Thank you for your time and
your expertise today.
And it is unfortunate that my colleague from Kansas had to
leave a little bit early, but I can assure you when I get to
see him on the floor today, I am going to tell him that while I
was shamelessly promoting the Lone Star State by the slogan
that Texas is like another country, I was indirectly promoting
Kansas, because for about 9 years, the southwestern part of
Kansas was part of the Republic of Texas, part of this country
that was Texas. So if it is good for Texas, it is good for
Kansas.
My first question for you, Mr. Evans: You know, you
mentioned in your opening statement that our share of
international arrivals declined by 37 percent, from 17 percent
of the world market to 12.4 percent today. If we just
maintained our market share over that period you mentioned
467,000 American jobs would have been created.
We want to ensure that everyone, rural and urban, benefits
from Brand USA's marketing efforts, but we also need to make
sure it operates beyond controversy, and that we target true
foreign destinations that foreign visitors want to go to. I
mentioned in my comments earlier that Buffalo Gap, Texas,
Perini's Steakhouse there, that is a great destination. They
will even give you a cowboy hat. But very few people, I think,
from overseas want to go to Perini's in Buffalo Gap, Texas.
So what is the policy of Brand USA regarding the promotion
of a particular location to make sure that we truly target
where foreign tourists will visit?
Mr. Evans. So I am not sure it is a policy, but our work
pattern is that we will work with anyone and everyone, and have
interest in working with all States. In fact, we have a program
under development right now with the State of Texas through
Julie Chase, who is your head of tourism, to make sure that we
are comarketing together to help her to approach the issues
that she is dealing with in trying to increase international
tourism by helping her expand her investments, by adding her
into some of the investments that we will be making with our
brand.
So as far as, you know, individual towns are concerned,
that is probably a little bit more difficult issue because they
really don't have the budgets to partner. So we would expect
that she--they would look to Julie and the State of Texas to
make sure they are partnering with Brand USA to extend their
marketing reach as far as possible.
Mr. Olson. So the States become the liaison between you and
the people back home.
Mr. Evans. The States and many CVBs.
Mr. Olson. Outstanding. Great. Thank you.
A question for you, Ms. Harrison. First of all, I want to
thank you, because the Marriott hotel in the town center in
Sugar Land, Texas, where I live, my home, is doing its share to
promote international tourism. And let me explain that.
A recent study found that the Greater Houston area was the
most diverse, ethnically diverse, large city in America. Number
one. And Fort Bend County, where I live, was the most diverse
part of the Greater Houston area. In fact, this past Saturday I
was at a wedding there at the Marriott there in town center.
And I was not at the wedding, I was at another event, but there
was a wedding going on, and these were Indian Americans. And
many of those people had to get passports and had to come here,
and they found a home at your hotel for a couple of days. And I
thank you for that. One thing you guys couldn't accommodate was
the bride could not ride in on the elephant. You guys had no
room for the elephant there. You are doing your share.
I just want to follow up on the comments that the chairman
had when she was here. But how are you using Brand USA to
coordinate with the Federal office that is involved in this
process that the first panelists mentioned? The Federal
Government, we have got these offices, boards, all these groups
out there. How are you communicating with them with Brand USA
to make sure that the left hand knows what the right hand is
doing, that you are not duplicating your efforts at Marriott?
Because you guys are doing great things.
Ms. Harrison. We have a lot of associates in our corporate
headquarters, and we have several of them that work very
closely with Brand USA in the marketing department. And part of
our in-kind contributions are coming from working with them on
the marketing and putting things up on our Web sites. And we
work in concert with them to help promote the United States as
a destination through our channels. We have huge distribution
channels with our reservation channels, and many people go on
line every year. And so we work with them to market Brand USA.
So we have several people in our corporate headquarters that
work very closely with them. And we work closely with them on
the policy pieces of it to try and get our visas streamlined
and the wait times down and so that they can market that.
Part of what Brand USA does that we find that is so
valuable is that they also educate the traveling public as to
what is expected when they go to the consulates. You know, the
fingerprints have to be taken, those kinds of things. So they
market, but they also educate, and we appreciate that.
Mr. Olson. Thank you. That sounds like a true quasi-public-
private partnership that works very well.
One final question for you, Mr. Freeman. I am running out
of time. But how does the waiting time for the U.S. entry
screening process compare to other similar nations? How are we
doing? It sounds like we are not doing very well.
Mr. Freeman. When it comes to visa wait times, America is
at a huge competitive disadvantage. Brazilians are not required
to have a visa to go to Western Europe. That puts America--when
you consider that the U.S. often had a wait time of over 90
days, 100 days at times, it put America at a huge competitive
disadvantage.
And we heard talk before of perhaps Americans losing
visitors because of competition. Another way of saying that is
America is losing visitors because of its lack of
competitiveness, because we are not putting the policies and
the resources in place to put ourselves on a par with our
competitors around the world.
The State Department has made great strides. What we all
need to do is help them to make these things sustainable with
some of the policies we discussed earlier.
Mr. Olson. Thank you. I am out of time. I yield back.
Mr. Harper. The chair recognizes the gentleman from Texas
Mr. Gonzalez for 5 minutes.
Mr. Gonzalez. Thank you very much, Mr. Chairman.
Real quick observations, then I will ask a question. You
heard me question the Under Secretary or Assistant Secretary
about coordinating their effort to the different agencies and
departments. You really need to be keeping us informed as to
where you don't see that coordination taking place.
The reason for it, by the very nature of the beast, all of
these different departments and agencies have different
priorities. You know, DHS is going to be obviously different
even from State Department, and State Department will be
different from Department of Commerce. We run into this all of
the time, and it is a legitimate factor that we need to take
into consideration.
I heard you about government conferences, agencies and
departments. You are going to see more of that. We are really
cutting spending, both sides of the aisle. I mean, it is just
going to be out there. I think you need to prepare for that.
And I see organizations and associations, bar Associations and
such, doing the same thing because of the teleconferencing that
is out there, and it is cheaper. It has tremendous impact.
Scott White will tell you; I am from San Antonio, and I
don't tell have to tell you what the tourism means to my city.
I am not happy about it, yet I don't know how we are going to
be able to resolve that. When we talk about austerity measures
and such, you need to be explaining that to your Members of
Congress, that there are real economic consequences to you,
your business and to jobs throughout America.
You know, Mr. Long, you pointed something out. Two weeks
from today--at least I hope that I will be--I will be in
northern California. The first thing I am checking are all the
State parks, hours of operation, maintenance and everything
else. It is not what it used to be. You are not real sure what
is open anymore. And I know California may be unique in some
ways, but I have been in New Mexico, too. It is not the same,
and that is a very, very real concern to me.
The other thing, of course, is infrastructure. The truth is
we know what it would take, we are just not willing to pay for
it. I have said this often, and I know President Eisenhower set
out to build an interstate highway system that has served us
well to this very day. And people tell me that back then he was
able to sell it on the proposition it was a national security
issue. I don't know if that is true or not, but I do know this,
that he raised substantially the tax on gasoline.
Now, that is what it really takes to do anything in this
country regarding our bridges, and our roads and
infrastructure. It is not going to happen. This Congress would
not have embarked on an interstate highway system. I mean, that
is just a fact. I don't know if anybody here is going to
dispute that or not.
With that, let me ask you this, Mr. Evans: How did you
people get information before they travel? I think we all know
the answer, but you tell me.
Mr. Evans. I think a variety of ways, but I think in
today's marketplace--I will give you several. One is our Web
site, discoveramerica.com. All of our States have Web sites
that people will use to gain information. Travel agents around
the world, wholesalers around the world provide that type of
information, as well as social media has become a great
resource for people as they begin to plan trips.
We have an application on our Web site called ``Suitcase''
that people can click into and investigate States and cities
and begin to put together their trip through, you know, not
only checking the cost of flying, but checking the cost and the
mileage of driving, so it helps them plan trips.
So I think today with the social media, with our Web site,
and with the network of travel industry, people have more
resources than ever to investigate and to plan their trips.
Mr. Gonzalez. So in a word, it is the Internet. This
committee has jurisdiction over telecommunications. We probably
have a greater intimate knowledge of how it works from its
infrastructure to every moving part. You also need to be
telling us how it serves you, problems that you have. And we
know the world has changed, and how do you get your message out
there? Search engine placement is placement, advertising is
advertising, and you have a bunch of middle people now.
Basically I could go to a Marriott Web site, but the truth is I
have got all these brokers out there, and we need to understand
that, and where you think we can be of assistance, you need to
be telling us.
I only have a few seconds, so your answer has to be very
precise, concise. What is the one thing--if you asked Congress
to do today and we could grant it, what is the one thing to
help you? In just 5 seconds.
Mr. Evans. I would keep focusing on visa waiver issues, and
improving that process, and do everything that people can to
support Brand USA in our messaging around the world.
Mr. Gonzalez. Mr. Freeman.
Mr. Freeman. Listen to Jim's advice on the visa waiver
program.
Mr. Gonzalez. Ms. Harrison?
Ms. Harrison. Listen to Jim also.
Mr. White. Agree. Visa waiver program.
Mr. Long. I agree and add a strong element of research to
that as well.
Mr. Gonzalez. Thanks very much for your testimony.
I yield back, Mr. Chairman.
Mr. Harper. The gentleman yields back. The chair will now
recognize himself for questioning for 5 minutes.
And we thank each of you for being here, and I can assure
you despite my friend's comments about the interstate highway,
it is clear that highways, roads, bridges have always had
strong bipartisan support. It is imperative that we do that.
But I would start with this, if I could, and ask Mr.
Freeman, how much do gasoline and aviation and fuel prices
affect the type of travel that we are talking about today?
Mr. Freeman. There is no doubt as travel becomes more
expensive, it has a consequence on how it is used. At the same
time, however, we have seen that travelers are awfully
resilient. We saw that as gas prices rose in 2007. We saw it
again earlier this year as gas prices rose.
When you look at that increase of even $1 a gallon, when
you look at it over the cost of a trip, you may be adding $20
to the cost of your trip. Certainly when you look at fuel
prices, you have some serious issues there, and the fuel prices
have led the airlines to put in place many new ancillary fees
that drive certain costs of travel now. Those are certainly a
concern for many travelers.
We are particularly concerned about the issue of carry-on
bag fees and the effect that that has, and it all starts with
those fuel prices, the effect that has on the TSA experience.
According to TSA, you have seen a $260 million cost to
taxpayers because of the increase of 50 percent of bags coming
through.
Mr. Harper. When it comes to an individual family that
might be traveling versus a group tour, does that gas at the
pump have a bigger impact for that group tour?
Mr. Freeman. It certainly could. The data tends to show
that travelers are awfully resilient, but that is not an excuse
for not finding a long-term policy, and we certainly need to
get that figured out.
Mr. Harper. Certainly. And if there is a way to get gas
prices back down, that is going to help towards--that is a
given.
Mr. Freeman. It will certainly help.
Mr. Harper. On the international travelers, when you are
giving that response, you are referring to domestic as well as
international travelers.
Mr. Freeman. I am largely referring to domestic. The one
thing we have seen with international travelers, even when the
currency in the United States--when the dollar was weak, we
weren't seeing the number of visitors that we needed. The visa
policies, the entry policies, the promotion are the key things
with international travelers.
Mr. Harper. Thank you, Mr. Freeman.
Mr. Evans, have you identified any areas where the
administration or Congress can assist in growing the number of
international visitors by revisiting any particular regulations
or laws other than the waiver, visa waiver?
Mr. Evans. I am not sure about regulations or laws, but we
are working right now with the State Department and helping
them to--excuse me, them helping us to launch our promotions in
country. Right now we are looking at some test operations in
Canada and in France and Germany that we hope to launch before
the summer is out where we would do something to help improve
the experience of waiting in the waiting area for visa
processing, as well as we launch, because our ambassadors have
so many contacts in country, that they could help us meet many
of the leaders in the community. And so we are talking about
some launch parties in those test countries also.
Mr. Harper. And I am just curious. You stated that you
estimate current in-kind contributions around $20 million, I
believe.
Mr. Evans. You know, it is a hard number to just hold to. I
think in our pipeline right now, we are probably $31 million.
But the process of valuing that at fair market brings it down
somewhere near $20 million.
Mr. Harper. Well, can you discuss what those in-kind
contributions entail?
Mr. Evans. It is a variety of things. It is everything from
an airline seat or a hotel room, where we are given access to
those assets to build travel packages around or to use
internally for our own personal travel. We have a team of
people going out to Marriott this Friday--I think it is our
third meeting--to begin talking about how we can create in-kind
marketing opportunities. That ranges from everything from
putting our logo on your advertising, to your Web site, to
creating a 50/50 cooperative marketing opportunity.
Mr. Harper. Got you.
All right. At this time I will recognize the gentleman from
Illinois Mr. Kinzinger for questioning for 5 minutes.
Mr. Kinzinger. Thank you, Mr. Chairman.
I have to echo your comments you made about the interstate
system. This is a majority that has been very supportive of
infrastructure, I think it is important to say.
But I thank you for the time, and I am glad we are all on
the same page when it comes to the importance of increasing our
travel and tourism in the United States, obviously a very
important industry.
Increased travel achieves significant foreign policy
objectives as well by introducing international visitors to our
best goodwill ambassadors, which is our citizens. In fact, if
you go out on the Mall here in Washington, DC, you are shown
many people from around the world that come and get their
picture taken in front of a great symbol of what American
freedom is, either the Capitol or the White House, or any of
the other landmarks.
I am a cosponsor of the Welcoming Business Travelers and
Tourists to America Act, which will remove the self-imposed
barriers in the business and tourist visa application process
that is presently discouraging travel to United States, as we
have talked about. I am working to ensure that hopefully we
will see action in the House on this legislation before the end
of the year.
For a moment, though, I want to switch gears and turn our
attention to U.S. citizens traveling abroad. I have been
concerned about the health and safety of U.S. travelers abroad
and ensuring that our consumers have the most important safety
and health information when booking international travel on
line. I am a lead sponsor of the International Travelers Bill
of Rights, which is a bill that would require online travel
operators to display certain health and safety services
available at hotels, and it requires the State Department to
update the record of overseas deaths of U.S. citizens from
unnatural causes on a monthly basis, including locality.
It is so much easier for consumers to book foreign travel
on line, and they may or may not be aware of the safety and
health problems at a particular hotel or region that is present
without this information.
So my first question is to Ms. Harrison and Mr. Freeman. Do
you believe that consumers have enough information when booking
foreign travel at a hotel that is not U.S. owned or U.S. Based?
Ms. Harrison. I am not sure that I have the expertise to
speak on that, but this has come up before, and our feeling is
that there--if you go on line and you book a hotel room at one
of our hotels overseas, you are also able to contact that hotel
and ask those pertinent questions that may concern you and may
worry you.
As far as having lifeguards at every pool and those kinds
of issues, that is sort of done by a regional basis, a hotel-
by-hotel basis. I think that the information is accessible on
line, and customers are certainly welcome to call our general
manager.
Mr. Kinzinger. And I don't think, you know, necessarily
American-based hotels even overseas are as big of a problem as
what we see is hotels that are owned and operated overseas. I
had a specific case of somebody in my district who lost a son,
and this is information that would have been probably very
handy to them.
Mr. Freeman, do you have any input on this at all?
Mr. Freeman. We are an organization that is entirely
focused on travel, too, within the United States. I think your
last comment is important, though, because the access to
information is what will be difficult for many, perhaps those
tour operators and others, booking that travel overseas. If
they don't have access to the information, it is going to
become very difficult to share.
Mr. Kinzinger. I don't know if anybody else on the panel
had any thoughts or anything.
And do you believe the current State Department--probably
along the same lines, probably give me about the same answer--
but do you believe the current State Department travel warnings
and overseas death notifications are distributed in a manner
that is useful in informing travelers of any unforeseen
dangers? Anybody? Same basic answer on that?
OK. I think it is an important--and I understand where
your-all areas of expertise are, but I think it is something
that obviously is very important when we talk about U.S.
citizens traveling abroad that they have that information
available to them.
So with that, thank you for your patience and coming in
today, and I yield back.
Mr. Harper. The gentleman yields back.
I want to thank each of you for being here today. You have
added some valuable insight and have been a great resource for
the committee. And we wish each of you well. And as we travel
across the country, we hope we will see you again.
I remind Members that they have 10 business days to submit
questions for the record, and I ask the witnesses to please
respond promptly to any questions they may receive.
This hearing is now adjourned.
[Whereupon, at 12:38 p.m., the subcommittee was adjourned.]
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