[Senate Hearing 113-563]
[From the U.S. Government Publishing Office]





                                                        S. Hrg. 113-563

                 THE STATE OF U.S. TRAVEL AND TOURISM:
       INDUSTRY EFFORTS TO ATTRACT 100 MILLION VISITORS ANNUALLY

=======================================================================

                                HEARING

                               before the

        SUBCOMMITTEE ON TOURISM, COMPETITIVENESS, AND INNOVATION

                                 of the

                         COMMITTEE ON COMMERCE,
                      SCIENCE, AND TRANSPORTATION
                          UNITED STATES SENATE

                    ONE HUNDRED THIRTEENTH CONGRESS

                             SECOND SESSION

                               __________

                              MAY 8, 2014

                               __________

    Printed for the use of the Committee on Commerce, Science, and 
                             Transportation
                             
                             
                                   ______

                         U.S. GOVERNMENT PUBLISHING OFFICE 

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       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                    ONE HUNDRED THIRTEENTH CONGRESS

                             SECOND SESSION

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
BARBARA BOXER, California            JOHN THUNE, South Dakota, Ranking
BILL NELSON, Florida                 ROGER F. WICKER, Mississippi
MARIA CANTWELL, Washington           ROY BLUNT, Missouri
MARK PRYOR, Arkansas                 MARCO RUBIO, Florida
CLAIRE McCASKILL, Missouri           KELLY AYOTTE, New Hampshire
AMY KLOBUCHAR, Minnesota             DEAN HELLER, Nevada
MARK BEGICH, Alaska                  DAN COATS, Indiana
RICHARD BLUMENTHAL, Connecticut      TIM SCOTT, South Carolina
BRIAN SCHATZ, Hawaii                 TED CRUZ, Texas
EDWARD MARKEY, Massachusetts         DEB FISCHER, Nebraska
CORY BOOKER, New Jersey              RON JOHNSON, Wisconsin
JOHN E. WALSH, Montana
                    Ellen L. Doneski, Staff Director
                     John Williams, General Counsel
              David Schwietert, Republican Staff Director
              Nick Rossi, Republican Deputy Staff Director
   Rebecca Seidel, Republican General Counsel and Chief Investigator
                                 ------                                

        SUBCOMMITTEE ON TOURISM, COMPETITIVENESS, AND INNOVATION

BRIAN SCHATZ, Hawaii, Chairman       TIM SCOTT, South Carolina, Ranking 
MARK PRYOR, Arkansas                     Member
AMY KLOBUCHAR, Minnesota             ROY BLUNT, Missouri
MARK BEGICH, Alaska                  DAN COATS, Indiana
EDWARD MARKEY, Massachusetts         DEB FISCHER, Nebraska
JOHN E. WALSH, Montana               RON JOHNSON, Wisconsin


                            C O N T E N T S

                              ----------                              
                                                                   Page
Hearing held on May 8, 2014......................................     1
Statement of Senator Schatz......................................     1
    Prepared statement of Hon. Amy Klobuchar, U.S. Senator from 
      Minnesota..................................................     3
Statement of Senator Scott.......................................     4
Statement of Senator Blunt.......................................    28
Statement of Senator Heller......................................    34

                               Witnesses

Roger Dow, President and Chief Executive Officer, U.S. Travel 
  Association....................................................     5
    Prepared statement...........................................     7
Christopher L. Thompson, President and Chief Executive Officer, 
  Corporation for Travel Promotion (Brand USA)...................    11
    Prepared statement...........................................    12
Mike McCartney, President and Chief Executive Officer, Hawaii 
  Tourism Authority..............................................    18
    Prepared statement...........................................    20
Brad Dean, President and Chief Executive Officer, Myrtle Beach 
  Area Chamber of Commerce.......................................    23
    Prepared statement...........................................    25

                                Appendix

Letter dated April 7, 2014 to Hon. Amy Klobuchar from the 
  American Hotel & Lodging Association...........................    43
Letter to Hon. Gus Bilirakis from Clyde J. Hart, Senior Vice 
  President for Government Affairs and Policy, American Bus 
  Association....................................................    44
Letter dated April 17, 2014 to Hon. Gus Bilirakis and Hon. Peter 
  Welch from Geoff Freeman, President and CEO, American Gaming 
  Association....................................................    44
Letter dated May 8, 2014 to Representative Bilirakis from John H. 
  Graham IV, CAE, President and CEO, ASAE--The Center for 
  Association Leadership.........................................    45
Letter dated April 11, 2014 to Hon. Amy Klobuchar and Hon. Roy D. 
  Blunt from Zane Kerby, President and Chief Executive Officer, 
  American Society of Travel Agents..............................    46
Letter dated May 16, 2014 to Members of Congress from Kevin 
  Mitchell, Chairman, Business Travel Coalition..................    46
Letter dated April 9, 2014 to Hon. Amy Klobuchar from Christine 
  Duffy, President and CEO, Cruise Lines International 
  Association (CLIA).............................................    47
Letter dated April 24, 2014 from Michael Gehrisch, President and 
  CEO, Destination Marketing Association International...........    48
Letter dated May 8, 2014 to Senator Roy Blunt and Senator Amy 
  Klobuchar from Kenneth Svendsen, President, Walt Disney Travel 
  Company and Senior Vice President, Global Sales................    48
Letter dated May 7, 2014 to Hon. Amy Klobuchar from John F. 
  Edman, Director, Explore Minnesota Tourism.....................    49
Letter dated May 6, 2014 to Hon. Amy Klobuchar and Hon. Roy Blunt 
  from Paul Noland, President and CEO, International Association 
  of Amusement Parks and Attractions.............................    50
Letter dated May 6, 2014 to Hon. Amy Klobuchar from Maureen 
  Hooley Bausch, Executive Vice President, Mall of America.......    50
Letter to Members of Congress from Wayne Ingram, President and 
  Chief Executive Officer, National Tourism and Heritage 
  Association....................................................    51
Letter dated April 11, 2014 to Hon. Roy Blunt from Tracy 
  Kimberlin, President/CEO, Springfield Missouri Convention & 
  Visitors Bureau................................................    52
Letter dated May 8, 2014 to Hon. Amy Klobuchar and Hon. Roy D. 
  Blunt from Stephen Shur, President, Travel Tech................    52
Letter dated April 22, 2014 to Hon. Any Klobuchar and Hon. Roy 
  Blunt from R. Bruce Josten, Executive Vice President, 
  Government Affairs, U.S. Chamber of Commerce...................    53
Letter dated April 4, 2014 to Hon. Amy Klobuchar and Hon. Roy 
  Blunt from Roger J. Dow, President and CEO, U.S. Travel 
  Association....................................................    53
Letter dated May 23, 2014 to Hon. Amy Klobuchar and Hon. Roy 
  Blunt from Desiree Filippone, Managing Director, Government 
  Relations, United States Olympic Committee (USOC)..............    54
Letter dated April 22, 2014 to Senator Amy Klobuchar from Terry 
  Dale, President and CEO, United States Tour Operators 
  Association....................................................    55
Letter dated March 5, 2014 to Congressman Gus M. Bilirakis from 
  Will Seccombe, President and CEO, VISIT FLORIDA................    55
Response to written questions submitted to Roger Dow by:
    Hon. Brian Schatz............................................   106
    Hon. Bill Nelson.............................................   108
    Hon. Amy Klobuchar...........................................   108
Response to written questions submitted to Christopher L. 
  Thompson by:
    Hon. Bill Nelson.............................................   109
    Hon. Amy Klobuchar...........................................   110
    Hon. Roy Blunt...............................................   112
Response to written question submitted by Hon. Amy Klobuchar to:
    Mike McCartney...............................................   114
    Brad Dean....................................................   114

 
                 THE STATE OF U.S. TRAVEL AND TOURISM:

                      INDUSTRY EFFORTS TO ATTRACT

                     100 MILLION VISITORS ANNUALLY

                              ----------                              


                         THURSDAY, MAY 8, 2014

                               U.S. Senate,
      Subcommittee on Tourism, Competitiveness, and Innovation,    
        Committee on Commerce, Science, and Transportation,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 10:02 a.m. in 
room SR-253, Russell Senate Office Building, Hon. Brian Schatz, 
Chairman of the Subcommittee, presiding.

            OPENING STATEMENT OF HON. BRIAN SCHATZ, 
                    U.S. SENATOR FROM HAWAII

    Senator Schatz. Good morning. I call this hearing to order. 
This is the first hearing of the Subcommittee on Tourism, 
Competitiveness, and Innovation. I am glad to be here with 
Ranking Member Scott to work together to advance the tourism 
industry and create good jobs in every State, including my home 
state of Hawaii.
    This hearing will examine whether we are reaching our 
Nation's goal of attracting 100 million international visitors 
annually by 2021. We will hear from key industry stakeholders 
and get their perspective on how the Federal Government can 
better achieve this goal.
    Tourism and hospitality know no ideology. This is an area 
where we can work together across party lines to create and 
keep jobs in the United States.
    The travel and tourism industry is a major economic driver 
and job creator in this country. It generates trillions of 
dollars in economic output, making it our top services export, 
and supports more than 14 million American jobs.
    When international travelers come to the United States, 
they spend an average of $4,400 on food, lodging, 
transportation, and entertainment, which is directly infused 
into local economies.
    I have a particular interest in this industry. It is the 
single largest source of private capital coming into the state 
of Hawaii, and 20 percent of our gross state product, creating 
the most jobs among the major economic sectors.
    As an island state located in the Asia-Pacific region, we 
are uniquely positioned to capture the growth in travel and 
tourism demand from the region's emerging markets.
    Over the past decade, international visitors to the United 
States have increased from 40 million to nearly 70 million. The 
United States holds the leading global share of international 
traveler spending.
    We are now seeing double digit growth in the number of 
visitors from China and Brazil, the only two countries in 
America's top 10 markets that are not members of the Visa 
Waiver Program.
    However, while international arrivals are increasing, our 
overall share of the global market is decreasing. This market 
is growing due to the rise of tourism and new emerging 
economies, so we must be proactive to grow our leading market 
share. The Commerce Committee has a history of taking action to 
strengthen our competitiveness in the global travel 
marketplace. Although we have seen big gains in international 
visitation in the last 5 years, we have to continue to look for 
additional ways to increase market share.
    Today, we will focus on three critical areas to maintain 
America's competitiveness in travel and tourism.
    The first is how the United States engages in travel 
promotion. Prior to the establishment of Brand USA, the United 
States lacked a coordinated international promotion strategy. 
We need to creatively and effectively market the United States 
as a premier travel destination.
    Individual U.S. destinations also market to international 
visitors but understanding how their efforts coordinate with 
and complement national efforts is key to doing this well.
    The second issue is accessibility. In the past, 
international visitors have experienced long wait times at our 
ports of entry, which did not create a feeling of welcome.
    A recent U.S. travel survey showed that international 
travelers are less likely to come back because of the long 
lines and wait times. More than 40 percent of international 
travelers that visited said they would recommend avoiding a 
trip to the United States because of the entry process.
    This is costing our economy billions of dollars.
    Customs and Border Protection has tried to reduce wait 
times by establishing the Global Entry program to expedite the 
processing of low-risk travelers, and working with the private 
sector to implement the model ports program.
    We have also had challenges meeting the visa demand, 
especially in high demand countries, such as China and Brazil. 
The State Department has made significant progress in reducing 
the visa interview wait times by adding consular offices and 
implementing a pilot program to waive interviews for low-risk 
applicants. However, as demand rises, we will need to come up 
with innovative methods to maintain low wait times that are 
competitive with other countries.
    While CBP and the State Department have made some 
improvements, we need to be looking at how we can further 
streamline the processes, such as by expanding trusted traveler 
programs and leveraging new technologies to increase 
efficiency.
    Last, the Subcommittee will focus on how we can provide a 
unique visitor experience to attract new visitors and encourage 
repeat visits. We can achieve this by becoming more customer 
focused in how we deliver Federal services. We also must help 
small businesses to grow and provide high quality products and 
services.
    As we work to address these areas, a critical component 
will be public-private partnerships. The Travel and Tourism 
Advisory Board and Brand USA are examples of effective 
partnerships between the sectors to coordinate efforts and 
advance travel and tourism policy, but we must continue to 
build on these successes and find ways to increase 
collaboration to address barriers to travel in the tourism 
industry.
    I look forward to hearing from the witnesses on how we can 
continue working together to grow our travel and tourism 
industry. I want to thank you all for being here today.
    I would also like to mention that Senator Klobuchar wanted 
to be here today but was unable to attend because she is 
attending Congressman Oberstar's funeral. She has been a strong 
leader on tourism issues as the co-chair of the Tourism Caucus 
and on Brand USA reauthorization.
    She will be submitting a statement and some questions for 
the record.
    [The prepared statement of Senator Klobuchar follows:]

 Prepared Statement of Hon. Amy Klobuchar, U.S. Senator from Minnesota
    Thank you, Chairman Schatz and Ranking Member Scott for holding 
this important hearing on strategies to bring more tourists to the 
United States.
    As the former Chair of this Subcommittee, I know the importance of 
the tourism industry to our Nation's economy. In fact, tourism is 
America's seventh largest private sector industry, and it is America's 
number one service export. That is why as co-chair of the bipartisan 
Senate Tourism Caucus with Senators Blunt, Begich and Kirk, and as a 
member of the President's Export Council, I've been working on policies 
to encourage more international tourists to visit our states.
    The typical international tourist visiting the United States spends 
an average of $4,500. Multiply that by several million and you're 
looking at some really significant numbers. In 2012, international 
tourists added nearly $130 billion to the U.S. economy and generated 
more than $19 billion in federal, state and local tax revenue. Last 
year we set a new record with 70 million international tourists 
visiting the United States. For every 33 foreign tourists who come to 
the United States, one new American job is created and these are jobs 
that cannot be outsourced.
    One way to increase visitation to the United States is by making 
sure people around the world know all the great places they can see and 
activities they can do here. I supported the bipartisan Travel 
Promotion Act and the creation of Brand USA in 2010 as a marketing 
resource for destinations around the country and as a way for the 
United States to better compete for market share in the rapidly growing 
international travel market.
    We're starting to see that Brand USA is making a difference. A 
recent report found that in 2013, just a few years into operation, 
Brand USA's marketing campaigns increased visitation to the United 
States by 1.1 million people--or a boost of 2.3 percent over where it 
would have been without the marketing campaigns. These additional 
visitors spent $3.4 billion in the United States, supporting 53,000 new 
jobs.
    Now Senator Blunt and I are leading the effort in the Senate to get 
Brand USA reauthorized so it can expand to even more markets. We 
introduced S. 2250, a bill to reauthorize Brand USA, a couple of weeks 
ago and already have 24 bipartisan cosponsors on the bill including 
many members of this Committee. The overwhelming bipartisan support for 
the bill demonstrates how important tourism is for each of our states 
and to our local economies.
    With news about our reauthorization effort continuing to grow, we 
are earning new endorsement letters from national associations like 
U.S. Travel Association, the American Hotel and Lodging Association, 
the U.S. Chamber of Commerce, the Cruise Line Industry Association, and 
more. Additionally, state and local businesses and visitors bureaus are 
sending in their support. From my home state I have received letters of 
support from Explore Minnesota and the Mall of America, both of whom 
have partnerships with Brand USA and have been able to expand their 
marketing capabilities to bring foreign visitors to the Land of 10,000 
Lakes.
    We also need to make sure that our policies at other agencies keep 
up with the demand that Brand USA's efforts will create on our visa, 
ports of entry, and transportation systems. Earlier this week I sent a 
letter to Secretaries Pritzker and Jewell, the co-chairs of the 
President's Task Force on Travel Competitiveness, asking them to review 
and renew the Administration's commitment to the National Travel and 
Tourism Strategy, especially in light of the approaching 100th 
anniversary of our National Park System.
    I'd like to thank the witnesses for being here today and for your 
dedication to promoting U.S. tourism so that we can reach the 
President's goal of attracting 100 million visitors annually by 2021.

    Senator Schatz. Before I recognize Ranking Member Scott for 
his remarks, I would like to say that I appreciate his 
willingness and his leadership in working on these issues in a 
bipartisan manner. We have been working on a bill to facilitate 
more international visitors in the country.
    Senator Scott and I both come from places that know tourism 
well. He is from Charleston, South Carolina, a great tourism 
city on the East Coast. I expect an invitation shortly.
    We have seen how tourism helps small businesses and is a 
major driver of local economies and creating jobs. I look 
forward to partnering with Ranking Member Scott.
    Ranking Member Scott?

                 STATEMENT OF HON. TIM SCOTT, 
                U.S. SENATOR FROM SOUTH CAROLINA

    Senator Scott. Thank you, Chairman Schatz. I will tell you 
that your invitation is now present. Here you are, sir.
    Senator Schatz. Thank you very much.
    Senator Scott. I look forward to seeing you in South 
Carolina and in Charleston, specifically, as well.
    Chairman Schatz, thank you for putting this subcommittee 
hearing together. I look forward to hearing from our panelists. 
There is no doubt, without any question, that one of the most 
important issues that we can discuss today is tourism, and the 
impact of tourism is fantastic. When we look at the economic 
output that is derived through tourism, we should be very 
excited about this conversation.
    Looking for ways to get us to the place where, by 2021, we 
have more than 100 million tourists, international tourists, 
coming to America is a laudable goal. Looking at the success 
that we have seen last year with the 4.7 percent growth to 70 
million tourists, we are excited that the goal may soon be 
within our reach.
    I am excited to have on the panel Brad Dean. Mr. Dean is 
the CEO and president of the Chamber of Commerce in the Myrtle 
Beach area. And there is no doubt that when you get to know Mr. 
Dean, you will understand why I am so excited to have what I 
consider a force of nature before us.
    Here is a fellow who has gone the extra mile so 
consistently for the communities near Myrtle Beach, but also 
for South Carolina. When we think about the challenges of 
tourism, we think about the challenge of infrastructure when we 
think about Myrtle Beach.
    In fact, I think Myrtle Beach is perhaps the largest 
tourist destination without a major interstate taking folks 
there. I hope that you have an opportunity to talk about the 
necessity of further infrastructure investment.
    In South Carolina, one out of every 10 jobs are connected 
to tourism, much to the credit of folks like Mr. Dean and 
others throughout South Carolina that make their primary focus 
tourism.
    I know we are not here simply to talk about South Carolina 
tourism, but I thought I would go ahead and entice you all to 
do what Chairman Schatz said and come to South Carolina real 
soon. Our success really has happened because of the ability of 
travel promotion to be prioritized in our country. That focus 
and that objective has been very successful.
    The notion of accessibility, we will have a chance to talk 
about the success that we have had in Myrtle Beach and 
throughout South Carolina with our Canadian friends, and what 
that means to tourism and what that means to the bottom line.
    And let me talk about the bottom line for just a few 
seconds here. With a $2.1 trillion economic output--$2.1 
trillion economic output--nearly 15 million domestic jobs 
supported by tourism, I think the goal of reaching 100 million 
international visitors by 2021 will take those numbers up by 
another 30 percent to 40 percent, which means we could see 
another 3 million or 4 million jobs connected to the tourism 
industry, if in fact we are able to achieve our goals.
    2021 sounds like a long way away, but really, it is only 7 
years from today. And if we are going to be successful, we are 
going to have to take on some critical areas, including two I 
would like to focus on, travel promotion and accessibility, in 
order for us to achieve that goal.
    I look forward to the comments from all the panelists, of 
course. And thank you, Chairman Schatz, for putting together 
this hearing. I look forward to your successful visit to South 
Carolina in the next few months.
    Senator Schatz. Thank you very much, Senator Scott.
    It gives me great pleasure to introduce our witnesses. 
Today, we have Roger Dow, President and CEO of the U.S. Travel 
Association; Chris Thompson, President and CEO of Brand USA; 
Mike McCartney, President and CEO of the Hawaii Tourism 
Authority; and Brad Dean, President and CEO of the Myrtle Beach 
Area Chamber of Commerce.
    Before we start, I want you to know that your full written 
statements will be made part of the record, and I would also 
like to remind you to please limit your oral remarks to 5 
minutes.
    Mr. Dow, please proceed with your statement.

STATEMENT OF ROGER DOW, PRESIDENT AND CHIEF EXECUTIVE OFFICER, 
                    U.S. TRAVEL ASSOCIATION

    Mr. Dow. Thank you very much, Chairman Schatz and Ranking 
Member Scott. You both understand this travel and tourism 
business as well as any of us at this table, so we appreciate 
all your support.
    You both did an eloquent job of giving the stats, the 
numbers, so I am not going to repeat what you said. It is big. 
It is big business. It is jobs.
    When you really look at it, the travel industry really was 
hit by the economic downturn like everyone else, but it is a 
resilient industry. We are already back. Since 2010, we have 
added 700,000 jobs. We are back at record levels of employment.
    And it is really an opportunity. We are adding jobs 49 
percent faster than any other sector ofthe U.S. economy. And 
the nice thing about these jobs is they can't be outsourced. 
When someone works in Myrtle Beach, South Carolina, or Hawaii, 
we can't send them to another country to do their job. They 
have to be there in this industry. And it is a very labor-
intensive industry.
    It is also an industry that provides great upward mobility. 
Everyone at this table is an example of that and how you can 
move up in this industry.
    If you look at 2000, we had 17 percent of the market share 
of the global international market. The rest of the world has 
discovered that travel and tourism it is a front door to 
economic development. And if you look recently, we have gone 
down in global marketshare to 13 percent. When you really look 
at that, there is a tremendous opportunity for growth.
    We have to promote. We have to increase facilitation. We 
have to improve infrastructure, as you said.
    There is a lot of good news with regard to Brand USA, which 
passed in 2010. Brand USA passed by a monstrous margin, 3 to 1 
in the Senate and 3 to 1 in the House. In fact, it passed 
several times. It passed by those big margins, because it made 
so much sense.
    The Travel Promotion Act (TPA) created Brand USA, which you 
will hear about from Chris Thompson, so I will not take his 
thunder. TPA created an opportunity for a public-private 
partnership. It gave an opportunity to level the playing field. 
Now small destinations can promote themselves, not just the 
large destinations with big budgets. These destinations can 
promote where they want to.
    The most important thing is by promoting the U.S., they are 
also able to explain our security policies and how to come to 
the U.S.
    Brand USA is really helping to restore our competitive 
advantage in travel and tourism, so we can get to that goal of 
100 million visitors by 2021.
    Brand USA authorization goes through September of next 
year, and it is very important that it be reauthorized. Brand 
USA was a startup 2 years ago, now it is hitting full steam, 
and you will hear about some of their great success.
    The great thing about Brand USA is that not one penny comes 
from U.S. taxpayers. It is unlocking funds from international 
visitors, a small amount of funds, and from the private sector. 
This all supports American jobs and economic growth.
    If we get it reauthorized, as they say, it is quite a no-
brainer. Senator Klobuchar and Senator Blunt have introduced 
legislation in the Senate to reauthorize it, and identical 
legislation has been introduced in the House.
    So my first ask is let's attract 100 million visitors by 
reauthorizing Brand USA. Let's move S. 2250 through this 
committee and get it to the floor to be passed.
    We have big developments in regards to our visa process. 
The State Department has reduced visa wait times for interviews 
by as much as 90 percent. We have reduced wait times from 120 
days in places like China and Brazil down to 2 days. These 
improvements contributed to a 66 percent increase in arrivals 
from China and a 38 percent increase in arrivals to the U.S. 
from Brazil.
    We have added 11 Visa Waiver countries since 2008, which 
makes a huge difference in increasing travel to the U.S. The 
name ``Visa Waiver'' can be a misnomer because it sounds like 
we are looking the other way on security. In fact, we are 
looking the right way, because the program increases security 
protocols between the two nations. To get into the Visa Waiver 
Program, you have to adopt strict security guidelines and 
information-sharing agreements.
    Since 2008, when South Korea joined the Visa Waiver 
Program, arrivals increased by 65 percent. So expanding the 
Visa Waiver Program should be a priority for Congress.
    You stated that travelers are frustrated when going through 
Customs. We must provide the resources to properly manage the 
entry process with more Customs and Border Protection officers. 
The 2,000 Congress funded are great, but now we have to quickly 
identify where these officers are most needed and dispatching 
them to the most important ports of entry.
    The frustrations that global travelers have are the same as 
domestic travelers. I think the most important thing we can do 
is focus on really improving our infrastructure. Brad will tell 
you how he competes with congestion on the interstate highway 
system, not with other destinations. Travel to and within the 
United States has grown, and we must modernize and improve our 
aviation infrastructure.
    We have a passenger facility charge, which is $4.50, which 
hasn't gone up since 2000. In order to fund critical 
modernization projects and increase capacity at our airports, 
we are asking to increase the fee to $8.50 to keep up with 
inflation.
    This is important stuff. I certainly appreciate all of your 
support and look forward to reauthorization of Brand USA. Thank 
you for your time.
    [The prepared statement of Mr. Dow follows:]

Prepared Statement of Roger Dow, President and Chief Executive Officer, 
                        U.S. Travel Association
    Chairman Schatz, Ranking Member Scott and members of the 
Subcommittee: I am pleased to offer testimony on behalf of the U.S. 
Travel Association (U.S. Travel), the national non-profit organization 
representing all sectors of America's travel community. I had the 
opportunity to testify before this Subcommittee three years ago about 
the ``lost decade'' from 2000 to 2010, which saw America's share of the 
booming international travel market slip away. I return with good 
news--and with a prescription to spur even more growth and job 
creation.
    To address the topic of today's hearing, the state of travel and 
tourism is very good. In 2011, I testified about the enormous untapped 
potential for economic growth if we made it a national imperative to 
increase travel to and within the United States. Today I can report 
remarkable progress toward the National Travel & Tourism Strategy goal 
of attracting 100 million international visitors by 2021.
    Last year, the U.S. welcomed a record-breaking 70 million 
international visitors, up 4.7 percent from 2012. This week, nearly 200 
communities celebrated the economic impact these travelers have on 
local communities across America as part as part of National Travel and 
Tourism Week. This grassroots activity coupled with today's hearing 
sends the right signal to millions of travel-related workers across 
America: that the White House and Congress agree that the United States 
will actively compete in the global travel marketplace.
    In all 50 states, travel provides good domestic jobs that cannot be 
outsourced. In 2013, direct travel spending in the United States 
totaled $888 billion, which generated a total of $2.1 trillion in 
economic output and $134 billion in tax revenue. Travel also directly 
employed nearly 8 million Americans and was among the top 10 employers 
in 49 states and the District of Columbia. For example, in 2012 travel 
spending in Hawaii generated $18.6 billion in spending and $2.8 billion 
in tax receipts, while supporting 175,700 jobs. Similarly, travel 
employs 118,100 in South Carolina, generating $11.8 billion in spending 
and $1.7 billion in tax revenues.
    The travel industry was not spared by the economic downturn, but we 
are a resilient industry. Since 2010 we have added 697,000 jobs, 
restoring employment to pre-recession levels. We helped lead the 
recovery by expanding employment at a 49 percent faster pace than the 
rest of the economy. And these are jobs with significant opportunity 
for upward mobility, compounding the benefits of this surge in job 
growth over time.
    Today, travel is the Nation's number one industry export and is 
growing fast. Last year, travel exports grew 9.1 percent over 2012 to a 
record $180.7 billion (including traveler spending and international 
passenger fare payments to U.S. carriers), yielding a record $57.1 
billion travel trade surplus. According to the first-ever government 
estimates of GDP growth by industry, travel was the second-fastest-
growing industry in the Nation last year.
    The most lucrative segment of this sector is ``long-haul'' or 
overseas travel to the United States. Last year, nearly 32 million 
overseas travelers visited the U.S. For every 34 of these visitors, an 
additional American job is created.
    The overseas traveler stays longer and spends more while here--an 
average of 17 nights and nearly $4,500 per visitor per trip. Overseas 
visitors come to our cities and states to spend money and add few 
demands on public services. The turnstiles at our theme parks or 
national parks already exist; it's just a question of how many more 
people we can attract to them.
    The potential for further growth is enormous. In 2000, the U.S. had 
a 17 percent share of the worldwide travel market. Last year, even as 
we competed better in the booming global travel market, with four years 
of sustained growth, our share was only 13.2 percent. If the U.S. could 
regain the 17 percent of global long-haul travel market share by 2020, 
we would add 49.8 million visitors, $222 billion in spending and 
452,000 more jobs over that period. Our progress to date proves there 
remains tremendous room for further growth.
    Many of the obstacles to restoring our market share are self-
imposed and thus can be overcome. The keys are to promote expanded 
international travel to the United States and to facilitate border 
entry for legitimate travelers--without in any way compromising 
security.
    I promised some good news and here's the first piece: the 
performance of Brand USA. With strong bipartisan support, the Congress 
in 2010 enacted the Travel Promotion Act. That legislation created the 
public-private partnership now known as Brand USA. By promoting the 
United States as a destination and clearly explaining our security 
policies, Brand USA is helping to restore our competitive advantage in 
the world travel market. In four short years, Brand USA has become a 
powerful force for American job growth, leveraging partnerships with 
local travel and tourism entities in all 50 states for its global 
marketing campaign--all without a penny of U.S. taxpayer funds. This 
model of unlocking private sector funds without Federal taxpayers 
footing the bill is one that should be attractive across the political 
spectrum.
    The results are impressive. With an overwhelming return on 
investment, Brand USA last year attracted 1.1 million additional 
visitors to the United States--not only to gateway cities, but 
throughout our heartland. Now that Brand USA has hit its full stride, 
those numbers will continue to grow--but only if its authorization is 
extended. Last month, Senators Klobuchar and Blunt, joined by two dozen 
bipartisan cosponsors, introduced S. 2250 to reauthorize Brand USA for 
five years--identical legislation has also been introduced on a 
bipartisan basis in the House.
    So here's my first ask to get us to 100 million visitors: please 
move S. 2250 through this Committee and pass it on the Senate floor 
this year.
    The success of Brand USA in turn increases demand on our visa 
process. In this area, I can report on three important developments 
since my last testimony.
    First, as part of its implementation of the National Travel and 
Tourism Strategy, the State Department made remarkable progress in 
reducing wait times for visa interviews in China, India, Brazil and 
other high-demand nations. By deploying consular personnel more nimbly 
and with a focus on customer relations, State has reduced delays in 
many countries by as much as 90 percent.
    Second, Taiwan and Chile became the 37th and 38th nations admitted 
to our Visa Waiver Program (VWP) allowing for reciprocal visa-free 
travel in return for stricter security protocols between our two 
nations. More than 19 million travelers, 60 percent of all overseas 
visitors to the United States, arrived last year through the VWP. While 
here, they spend $79 billion and support more than a half-million jobs. 
Already, travel demand has risen sharply from Taiwan and Chile. This is 
no surprise, given the example of the staggering increase in visitors 
from South Korea since its inclusion in VWP in late 2008. Within five 
years, a record 1.3 million visitors arrived in the U.S.; and the pace 
of increase since has only picked up steam, growing by 65 percent since 
2008. In 2012, South Koreans traveler spending was $4.2 billion--52 
percent higher than in 2008. Travel is now the fifth-largest U.S. 
export to South Korea, constituting seven percent of total U.S. exports 
to Korea. Most importantly, Korea's travel spending in the U.S. in 2012 
supported 36,200 American jobs.
    Third, as part of the comprehensive immigration reform package 
passed last year, the Senate endorsed the ``Jobs Originating through 
Launching Travel'' (JOLT) Act, bipartisan legislation to accelerate 
progress further. The counterpart House bill (H.R. 1354), now pending 
with 150 cosponsors, would likewise expand the VWP and Global Entry 
program, reduce visa processing delays, enhance travel to the U.S. 
during low peak seasons, provide accelerated visa processing for a fee 
and test the use of secure videoconference technology for visa 
interviews.
    All these changes would address problems first identified in a 
comprehensive 2011 U.S. Travel report. Our analysis showed that delay, 
cost, access and unpredictability in the visa process served as a 
barrier for potential visitors and contributed to our lost market 
share. Progress has been made on these fronts, and the bill would 
codify standards and practices which will become only more critical as 
demand continues to rise.
    We commend the Senate for including the JOLT Act in the 
comprehensive immigration package passed last year by this chamber and 
urge your continued work to enact these travel facilitation provisions 
into law. Combined with other visa-related reforms--from extending the 
term of U.S. visas for Chinese travelers to permitting sub-national 
territories to enter the VWP--this legislation would vault us to the 
100 million-visitor mark.
    But all our work to promote the U.S. brand and to ease 
inefficiencies in the visa process will be ineffective unless we also 
improve the entry experience at our borders. Last year, a U.S. Travel-
commissioned survey of 1,200 overseas travelers from six top travel 
markets yielded these extremely disappointing results:

   Forty-three percent of those who visited the U.S. said they 
        would recommend avoiding a trip because of entry process 
        hassles;

   One in seven travelers said they missed a connection because 
        of entry process delays;

   Visitors report they would share their entry experience with 
        an average of eight other people; and

   Among potential business travelers, 44 percent said they 
        will not visit the U.S. in the next five years because of the 
        inefficient entry process.

    As discouraging as those reactions were, here's the one most 
important takeaway: almost two-thirds said that eliminating long lines 
and wait times would make the U.S. a more attractive destination. In 
other words: if we fix it, they will come.
    When they do, there must also be greater accountability. Just as 
our Nation set a goal for attracting 100 million visitors to the U.S., 
we need to process each arriving passenger within 30 minutes under 
normal operating conditions. Among survey respondents who had never 
come to the U.S., 40 percent said they would consider a visit if they 
knew they could count on timely entry processing.
    That means we must provide the resources to properly manage the 
entry process--and the Congress has recently taken giant steps in that 
direction, with funding for 2000 new U.S. Customs and Border Protection 
(CBP) officers. CBP should be commended to working quickly to identify 
where these officers are most needed and dispatching them by October 
2015 at 44 ports of entry in 18 states. In addition to new officer 
staffing, CBP has worked to identify innovative ways to address the 
growth in traveler volumes. For example, CBP has continued to promote 
the use of Global Entry, a trusted traveler program that now has 1 
million participants. Furthermore, they have partnered with America's 
gateway airports in developing new kiosks that make the processing 
experience more efficient.
    This is all great news that should help CBP to meet a 30-minute 
passenger processing goal at our air ports of entry and drive tens of 
billions of dollars in new visitor spending--as long as the new 
officers are accompanied by transparent metrics to demonstrate 
improvement in the actual passenger experience.
    Domestic travelers face some of the same travel-related 
frustrations, starting with the aviation security system. Many of the 
problems in this area stem from a refusal to accept any risk in the 
system. In the past, continual layers of security were added to address 
almost every conceivable threat. Even worse, few efforts were made to 
scale back, eliminate or tailor these layers for fear of being 
perceived as ``weak'' on security. As a result, travelers were stuck 
with an inefficient, one-size-fits-all screening process that hurt our 
economy and burdened American taxpayers.
    U.S. Travel agrees with TSA that these trends can only be reversed 
by using a risk-based approach with three critical elements. First, TSA 
and Congress must clearly identify the types of threats TSA is 
responsible for preventing. Second, relying on the latest intelligence, 
TSA must apply its limited resources to the highest priority threats. 
And third, TSA should always strive to provide the greatest level of 
efficiency in passenger screening, while maintaining security.
    With support from Congress and the private sector, TSA is now using 
a more risk-based approach. Specifically, U.S. Travel applauds TSA for 
creating and rapidly expanding PreCheck. This program increases 
security and efficiency and could eventually also reduce budget costs--
just as Global Entry does for international travelers.
    One additional priority that often gets overlooked is the need for 
baseline travel data on international visitors. The most important--and 
seemingly vulnerable--is the monthly Survey of International Air 
Travelers (SIAT). Initiated by the Commerce Department in 1983, the 
SIAT provides information on visitors' length of stay, level of 
spending and activities during their stay.
    These data help determine policies which, in turn, have helped 
drive industry jobs growth and we urge approval of the modest funding 
to grow and improve the SIAT.
    As critical as are promotion, visa reform, the entry experience and 
data collection, all are dependent on the safety and efficiency of 
fundamental transportation infrastructure. The United States simply 
cannot meet its goals to increase domestic and international travel 
without greater investments in our aviation and surface transportation 
networks. Within the next five years, 24 of the top 30 U.S. airports 
will experience Thanksgiving-like congestion at least one day per week. 
And the FAA predicts that 27 airports located in 15 cities won't have 
enough capacity to meet demand by 2025. At JFK and EWR alone, an 
inability to meet air travel demand will cost the U.S. economy $6 
billion annually by 2016.
    In order to ensure a vibrant and globally competitive travel 
industry, Congress must act to modernize and improve U.S. aviation 
infrastructure. This committee can help to lead this effort by 
accelerating deployment of the Next Generation Air Transportation 
System (NextGen) and allowing U.S. airports to raise their Passenger 
Facility Charges by up to $8.50, in order to fund critical 
modernization projects.
    Studies by U.S. Travel also show that within 10 years, major 
interstate corridors will experience daily congestion equal to Labor 
Day levels of traffic--and that air travel will grow from 800 million 
enplanements per year to almost a billion. If our infrastructure is 
inadequate today, it is completely unprepared for tomorrow. According 
to the 2013 survey, 38 percent of travelers would avoid between one and 
five trips annually if congestion continues to worsen--which will moot 
all the rest of our work toward attracting 100 million visitors.
    As travel to and within the United States has grown, our 
transportation network has failed to keep pace. While maintenance and 
modernization are expensive, failure to act will cost more.
    Finally, I would like to add a few words about two related 
concerns. First, while the word ``travel'' frequently connotes tourism, 
it is about much more than fun in the sun. Business travel accounts for 
30 percent of all travel spending. In 2013, business travel generated 
an estimated $267 billion in direct spending--three percent higher than 
the previous year. Totaling the deals done, products sold and 
opportunities created at industry conferences and trade shows that also 
employed scores of hospitality workers, business travel directly 
supports 2.3 million American workers.
    I also wish to address the specific question of travel by Federal 
employees. A key reason business travel is a strong economic driver is 
that face-to-face interaction leads to greater productivity, a fact 
that Members of Congress know well. Tele-townhalls are not as effective 
as personal meetings with constituents, and traveling to Washington to 
work directly with congressional colleagues can't be replaced by a 
``virtual'' Congress. To do their work, other Federal employees also 
need to attend occasional meetings and conferences. When conducted 
responsibly, Federal travel yields important returns on investment--
from safety inspections to disaster relief assistance to professional 
training. In 2012, government travel generated $33 billion for the U.S. 
economy and directly supported 296,000 American jobs.
    We agree there is no place for waste or excess in government 
conferences or meetings. And we support strict compliance with best-
practice guidelines established by the Office of Management and Budget, 
together with individual agencies. But we also know the dangers of 
across-the-board reductions that don't distinguish meritorious travel 
that achieves important public missions--and urge you to keep that 
distinction in mind as these issues arise.
    Again, thank you Chairman Schatz, Ranking Member Scott and all 
members of the subcommittee for inviting me to testify today. I look 
forward to answering your questions.

    Senator Schatz. Thank you very much, Mr. Dow.
    Mr. Thompson?

             STATEMENT OF CHRISTOPHER L. THOMPSON,

             PRESIDENT AND CHIEF EXECUTIVE OFFICER,

          CORPORATION FOR TRAVEL PROMOTION (BRAND USA)

    Mr. Thompson. Good morning, Chairman Schatz, Ranking Member 
Scott. Thank you for the opportunity to be here and talk about 
the Corporation for Travel Promotion, which is doing business 
as Brand USA. Thank you also for your appreciation for our 
industry and your comments on the frontend, as it relates to 
the impacts that it provides in each of your states.
    Brand USA is the national not-for-profit public-private 
partnership that was created by the Travel Promotion Act. Its 
main function is to promote the United States around the world 
as a premier travel destination and also to communicate visa 
and entry policy.
    Brand USA's global efforts play a substantial role in 
reaching the goal established by the national travel and 
tourism strategy to attract 100 million annual international 
visitors that will contribute to $250 billion.
    By executing the first-ever integrated marketing 
communications plan, Brand USA is attracting new international 
visitors to and through and beyond our gateways. I think that 
is a point that Roger brought up, and it is something really 
critical to what we do on a regular basis.
    I also would like to emphasize one of the facts that Roger 
brought up, that is this is done with the zero taxpayer 
dollars. It is visitors paying to grow the visitor industry.
    Our marketing plan consists of three main buckets. It is 
direct to consumer in the markets that we promote in around the 
world, which we are now in 30 different markets around the 
world. It is a cooperative marketing platform and programs that 
we do in partnership with our partner states and our partner 
cities. And it is also our trade outreach. Much of travel is 
facilitated by the travel trade, still in our emerging markets 
and, certainly, in our existing markets.
    The consumer campaign is a fully integrated campaign that 
consists of broadcast television, billboards, out of home 
advertising, and we are very active in social and digital 
platforms.
    We also market through a global and growing network of 
representation firms that help us navigate the cultures and 
mediums in all the markets that we are involved in around the 
world.
    Our marketing campaign invites the world to discover this 
land like never before. It not only encourages travelers to see 
it for the first time, but to see it for the first time again 
by those who have come in the past.
    By 2014, our consumer campaign will now be in 10 markets. 
Those 10 markets account for 75 percent of all the travel to 
the United States. We now have over 100 cooperative marketing 
platforms that provide over 200 different marketing 
opportunities for our partners to be engaged and be involved 
with us.
    Our partners highlight and reach all sorts of sectors. We 
have platforms that promote the great outdoors, that promote 
culture, that promote indulgence through spas and whatnot, and 
through urban excitement.
    Our business-to-business platforms, we work obviously with 
our supplier partners here in the United States that represent 
the destinations and the hospitality brands, and then we work 
with our buyer partners all over the world as they help 
facilitate travel and help us tell our story.
    Our partners represent all sectors of industry, and it 
represents, more importantly, large and small. A majority of 
businesses that are involved with us now, 400 partners, 
actually represent small businesses that make up the backbone 
of the community.
    And probably the most important partner we have is the 
Federal Government. Without the Federal Government's commitment 
to travel and tourism, and providing the funds that are 
attributed to our marketing program, we could not lay the 
foundation of the marketing efforts that we put out there. And 
it would not attract, last year, the $134 million that the 
private sector brought to the table to complement what the 
Federal Government put in place.
    One of the most recent things that we are very proud of is 
Oxford Economics, a recognized expert in our space, put out a 
study that suggested that what we are doing in cooperation with 
our partners, our supplier partners here in the United States, 
our buyer partners from around the world, accounted for last 
year, in 2013, 1.1 million incremental visitors that spent $3.4 
billion.
    When you churn that through the economy, it meant $7.4 
billion in overall economic impact. It supported 53,000 jobs. 
It generated over $1 billion of sales tax at the Federal, 
State, and local levels. And again, that was with zero taxpayer 
dollars.
    That return on investment of what we put in and what was 
returned was a 47 to 1 return. So we are obviously very proud 
that.
    In conclusion, as Roger said, our work has only just begun. 
We are in our fourth year of existence, third year of 
operation. But we are really now just hitting on all gears.
    We look forward to our partnership with the Federal 
Government. We are fully engaged through the Department of 
Commerce with the Tourism Policy Council that now has nine 
Federal agencies fully recognizing the contributions that the 
Nation's number one service export provides to the United 
States.
    And also, it provides one of the most positive balances of 
trade. So we feel very fortunate to be able to be partnering 
with the Federal Government. We feel indebted to our partners 
who recognize the value that we bring to the equation, and we 
look forward to doing more great things in the years ahead.
    Thank you for the opportunity to be here, and I look 
forward to answering any questions you may have.
    [The prepared statement of Mr. Thompson follows:]

  Prepared Statement of Christopher L. Thompson, President and Chief 
    Executive Officer, Corporation For Travel Promotion (Brand USA)
Introduction
    Chairman Schatz, Ranking Member Scott and Members of the 
Subcommittee: I am pleased to offer testimony on behalf of the 
Corporation For Travel Promotion, which does business as Brand USA. 
Brand USA is the national, non-profit, public-private partnership 
established by the Travel Promotion Act to promote the United States as 
the world's premier international travel destination and communicate 
visa and entry policy. Our mission is to increase international 
visitation to and spend in the United States in order to create jobs, 
grow exports and fuel the U.S. economy. As one of the best levers for 
driving economic growth, international travel to the United States 
currently supports 1.8 million American jobs and benefits virtually 
ever sector of the U.S. economy.
    I thank you for the opportunity to testify today and discuss how 
Brand USA's global efforts play a substantial role in reaching the goal 
established in the National Travel and Tourism Strategy of 100 million 
annual international visitors generating $250 billion in spend by 2021.
    International visitation contributes to the U.S. economy as the 
leading services export and one of the few areas in which the U.S. has 
a trade surplus. According to statistics from the U.S. Travel 
Association, international visitors spend on average $4500 per person 
during their trip and every 33 overseas visitors creates one new 
American job.
    By executing the United States' first-ever integrated marketing 
communications plan promoting the entirety of the United States, Brand 
USA is attracting new international travelers to, through and beyond 
the gateways.
    Our 400 partners represent private industries within and outside 
the travel industry from around the world and the United States. Many 
of these partners are destination marketing organizations, travel 
agents, tour operators, hotel and lodging companies, leading car-hire 
organizations and airlines. Our partners also include Major League 
Baseball, ESPN, the National Football League as well as leaders in the 
retail sector like Macys, Mall of America, and America's Premier 
Shopping Places.
    One of our most critical partners is the Federal Government, 
without whose support through the Travel Promotion fund and coordinated 
effort toward the goal of welcoming 100 million international visitors 
in one year, would make our ability to achieve our mission very 
difficult. The public-private partnership that is at the core of Brand 
USA's business model enables both gateway destinations and destinations 
well beyond the gateways to participate effectively in the 
international tourism marketing effort.
    Our partners, large and small, have seen the value of working with 
Brand USA in increasing international visitation to their states, 
cities, attractions and destinations. As a result, we have been able to 
earn a 97 percent core partner retention rate and significantly expand 
our partnership base to include smaller destinations and 
organizations--many of which are the backbone of local economies.
    It is particularly notable that $0 taxpayer dollars are used to 
fund the marketing effort.
Background
    Since the passage of the Travel Promotion Act in 2010, Brand USA 
has created a full-scale marketing campaign consisting of consumer, co-
operative marketing and trade outreach in 10 markets with trade 
outreach or marketing initiatives in more than 30 markets all at no 
cost to the U.S. taxpayer.
    The Travel Promotion Act was signed into law in 2010, creating 
Brand USA. In the fall of 2010, the U.S. Department of Commerce 
selected a Board of Directors. As required by the Travel Promotion Act, 
applicants across several sectors of the travel industry, including 
representation from the hotel and lodging, restaurant, small business 
or retail, travel distribution, attractions, city convention and 
visitor bureau, passenger air, intercity passenger railroad sectors as 
well as a member who has immigration law and policy expertise were 
selected. Brand USA hired its first employees in the spring of 2011. 
Those initial employees established what was a true start-up: there had 
not been an organization to ever market the USA as a whole. Research 
was conducted in 17 countries to guide our initial marketing campaign, 
partnerships were developed and established and policies and programs 
were put in place.
    Brand USA launched its marketing efforts in May of 2012 in the 
United Kingdom, Japan and Canada. The campaign encouraged visitors to 
``discover this land like never before'' and showcased to these 
markets, a United States that is not only welcoming, but is a country 
full of vast experiences and endless travel possibilities.
    In our first year we received contributions from the travel 
industry in order to receive the full Federal match of $100 million, as 
allowed by the Travel Promotion Act. Without first receiving private 
sector contributions, Brand USA is not eligible to receive any Federal 
funds. The Federal funds that supply the Travel Promotion Fund are 
collected from a portion of the fees paid by international travelers 
from visa waiver countries, known as the Electronic System For Travel 
Authorization (ESTA) fee. Applicants pay a fee of $14 that is valid for 
travel within a two-year period or when a traveler's passport expires--
whichever comes first. The fee is split between Customs and Border 
Protection and the Travel Promotion Fund with $4 going to Customs and 
Border Protection to run a security check and $10 going into the Travel 
Promotion Fund. As a result, all of our marketing efforts are at zero 
cost to the U.S. taxpayer.
    Brand USA is eligible to receive money from the Travel Promotion 
Fund at a one-for-one basis, up to $100 million per Federal fiscal 
year. These funds can be unlocked through contributions of cash or in-
kind such as airline tickets, hotel rooms, cooperative advertising or 
content (photos, videos) for use in our marketing efforts. These in-
kind contributions have a fair market value determined by established 
methodologies created in cooperation by the Department of Commerce and 
Brand USA. Additionally, each submission goes through a thorough review 
by several offices within the Department of Commerce. Currently, The 
Travel Promotion Act requires that we receive 20 percent of our funds 
through cash contributions.
    The ESTA fees collected actually exceed $100 million per year, with 
that overage going to Federal deficit reduction. The Congressional 
Budget Office has assessed that to be $425 million over a ten-year 
period.
    In 2013, we increased the number of markets we are deployed in from 
three to nine, adding Australia, Brazil, China (including Hong Kong and 
Taiwan), Germany, Mexico and the Republic of Korea. We ended the 
Federal fiscal year with 340 partners who had contributed nearly $130 
million to our efforts.
    Our marketing efforts are having a significant and positive impact 
on international arrivals. Oxford Economics, a worldwide leader in 
economic impact studies, recently released a study on Brand USA's 
impact on travel for 2013. They analyzed our efforts in eight markets, 
of which we were marketing the United States throughout the year. The 
study showed that Brand USA's marketing campaigns generated 1.1 million 
incremental visitors to the United States during 2013. These additional 
visitors spent $3.4 billion in the United States, including travel and 
U.S. carrier fare receipts.
    This spending fueled the U.S. economy by generating $7.4 billion in 
business sales, $3.8 billion in GDP, and $2.2 billion in personal 
income, as well as supporting over 53,000 new jobs in the United 
States. These results equate to a marketing return on investment of 
47:1 based on Brand USA's marketing expenses of $72 million and 
incremental international visitor spend of $3.4 billion. Notably, these 
results exceed projections of Brand USA's potential impact, which were 
estimated during the contemplation of the passage of the Travel 
Promotion Act.
    In 2014, Brand USA has introduced new programs and platforms within 
our broad range of marketing efforts to help reach the 100 million-
visitor goal. We have increased the number of partners to 400 and 
anticipate this year's contributions will exceed last year's.
    As I mentioned, we are also proud of the fact that we have had a 97 
percent partner retention rate from our first year to our second 
signaling to us that our partners believe we are accomplishing our 
mission and adding or creating value for the mutual benefit of these 
organizations and the local economies they represent. We have also been 
able to keep our administrative/overhead costs to approximately 10 
percent a year, ensuring that the vast majority of our budget is spent 
on marketing the United States as the premier travel destination.
    Last year, the Government Accountability Office conducted its 
second programmatic assessment of Brand USA. The report concluded that 
we are effectively and efficiently marketing the United States as a 
whole and doing so in compliance with the Travel Promotion Act and 
other standards.
Brand USA's Efforts to Reach 100 Million Visitors Annually
    Here is a more in-depth overview of each aspect of our marketing 
efforts and how they will help us contribute towards reaching the goal 
of 100 million international visitors by 2021:

        Consumer Campaign: The consumer campaign is a fully integrated 
        multi-channel campaign--comprised of TV advertising, 
        billboards, and other out of home media, print and social 
        media--plus direct in-market marketing through a global network 
        of representation firms being established in key international 
        markets.

        Country specific Facebook and Twitter pages showcase targeted 
        promotions and our website DiscoverAmerica.com acts as an 
        information portal for trip inspiration and planning.

        The key message in the campaign is to ``Discover this land, 
        like never before.'' We also wanted to spread the USA's 
        welcoming message around the world, inviting travelers to visit 
        us and see us again--or for the first time.

        Through this call to action, we are reminding the world's 
        travelers that the United States is a land of possibilities--
        from the well-known, iconic places to go, as well as 
        destinations beyond the gateway. Throughout the United States, 
        the District of Columbia, and the five territories, there are 
        virtually limitless experiences to discover.

        Brand USA bases its target market selection on a quantitative 
        model that consists of a variety of factors, including: 
        macroeconomic factors, such as GDP growth; demographic factors, 
        such as population size and age; sociopolitical factors, such 
        as civil liberty; situational factors, such as visa waiver 
        status; and diversification factors, targeting a mix of 
        established and emerging markets.

        By doing so, we are ensuring that we are concentrating our 
        marketing efforts in the right markets that have the greatest 
        potential for sustained and continued growth in order to 
        achieve the goal of the National Travel and Tourism Strategy of 
        100 million annual visitors by 2021.

        To that end, by the end of 2014, Brand USA will be fully 
        deployed in 10 markets with an integrated consumer campaign, 
        co-op marketing and trade outreach in: Australia; Brazil; 
        Canada; China; Germany; Mexico; New Zealand; Japan; South Korea 
        and the United Kingdom.

        Our country specific social media efforts have generated over 5 
        million fans throughout the globe, mostly in our target 
        markets. Over the course of this year, we are featuring various 
        content campaigns on our website and social media channels 
        designed to showcase the vibrancy and depth of tourism 
        opportunities that the USA has to offer.

        The first campaign ``Great American Road Trips'' covers 39 
        states across the United States on our websites and social 
        channels. To bring this content to life we have sent 
        influential international travelers to experience these road 
        trips first hand and share their travel stories with their 
        fans. Each road trip was paired to a country interested in that 
        region. We have had amazing results so far and millions of 
        engagements, and the campaign continues throughout the summer.

        In anticipation of the centennial of the National Park System, 
        Brand USA, in partnership with a leading producer of giant 
        screen films, is producing a giant screen film celebrating 
        travel to the United States and in particular our national 
        parks and Federally managed lands. This giant screen film will 
        capture the myriad of experiences available through the 
        Nation's great outdoors and inspire visitors to discover the 
        beauty and diversity across the United States.

        This initiative is a great opportunity to not only showcase our 
        National Parks, but to reach a large number of our key 
        international markets. There are over 800 giant screen theatres 
        in over 57 countries and that number is growing.

        China, one of the United States' top 10 countries in both 
        international visitation and spend, has the second largest 
        market with over 75 giant screen theatres located throughout 
        the country. Giant screen theatres can be found in many of 
        Brand USA's key target markets.

        Cooperative Marketing: Our co-op programs and platforms include 
        a variety of opportunities for partners to support and engage 
        in the national marketing effort to increase visitation and 
        spend in mutually beneficial ways.

        Brand USA has created over 100 new programs to give partners 
        over 200 opportunities to promote their destination and 
        encourage travel to the United States. These programs reach and 
        inspire travelers highlighting the diverse and unique travel 
        experiences in the United States from the great outdoors, to 
        culture, to indulgence, to urban excitement. We have platforms 
        that promote retail experiences, recreational pursuits and 
        cultural activities.

        Brand USA has created several original co-operative marketing 
        platforms including: Discover America Global Inspiration Guides 
        (language-specific guides), Marketing and Advertising 
        Opportunities on DiscoverAmerica.com (Brand USA's consumer 
        website), Media Planning and Buying (coordinated efforts to 
        amplify international advertising efforts), Custom In-Country 
        Multi-Channel Programs (print, digital, video, e-mail, radio 
        and television), Media/PR and Travel Trade Outreach (online 
        platforms that enable destinations, attractions and travel 
        brands to connect directly with international journalists and 
        travel professionals), USA Discovery Programs (online training 
        tool to educate the international travel trade to sell the 
        diverse destinations and experiences available in the USA).

        Many of these programs allow destinations to target markets and 
        create opportunities to increase visitation that they wouldn't 
        be able to do without our existence. For instance, the Discover 
        America Inspiration Guides are sent out throughout our markets 
        and have participation from large and small, urban and rural 
        destinations. These inspiration guides explore some of the most 
        authentic travel experiences and destinations in the U.S. We 
        print 500,000 copies in several different languages and the 
        digital editions receive over 100 million impressions. Because 
        of the size and scale that Brand USA can produce, destinations 
        are able to tailor their participation in a way that allows 
        them to gain exposure far beyond what they would be able to 
        create with spending the same amount on their own.

        Virtually every state, the 5 territories, and the District of 
        Columbia contribute to the production of these inspiration 
        guides. Alaska, Arkansas, Hawaii, Massachusetts, Minnesota, 
        Missouri, Montana and South Carolina, have contributed to be 
        featured in the inspiration guide. Every state, whether they 
        contribute or not, is a part of the guide to ensure Brand USA 
        is marketing the whole of the United States. The guide also 
        provides information on visa and entry requirements into the 
        United States.

        Trade Outreach: The business-to-business marketing efforts 
        includes trade shows, sales missions, road shows, themed 
        events, training initiatives, mega-familiarization tours of 
        various destinations, and advisory boards--all designed to 
        engage and influence tour operators, travel agents and other 
        travel professionals to increase business and leisure bookings 
        to the United States. As part of the business-to-business 
        effort, Brand USA is establishing one of the largest networks 
        of international representation firms to support its efforts 
        internationally.

        American Airlines and British Airways have collaborated with 
        Brand USA to conduct what is called a ``mega-familiarization 
        (megafam)'' tour in 2013 and 2014. Familiarization tours, or 
        ``fams,'' are an integral part of Brand USA's marketing 
        strategies to create awareness of the diverse destinations and 
        travel experiences that are available throughout the United 
        States and increase international visitation to and beyond the 
        gateways. When fam tour participants experience the USA first 
        hand, they are able to better relay information to their 
        clients. The Brand USA fam tours are called ``MegaFams'' 
        because they are the largest simultaneous familiarization tours 
        conducted in the United States--and as such, represent 
        something only Brand USA through a coordinated national tourism 
        effort can do.

        British Airways encourages travel agents within the United 
        Kingdom and the Republic of Ireland to sell trips to the United 
        States on British Airways within the first quarter of a 
        calendar year. Agents become eligible to participate when they 
        complete an online training program that was designed by Brand 
        USA and created specifically to educate agents to better sell 
        the U.S. market. The top 100 highest selling agents join the 
        MegaFam and are split into groups to experience different 
        itineraries across the United States.

        These itineraries include not only the gateway cities that 
        British Airways flies into but more off-the-beaten-path 
        destinations as well. For instance this year, travel agents 
        will visit Arizona, California, Colorado, Florida, Georgia, 
        Massachusetts, Nebraska, Nevada, New Hampshire, New Mexico, New 
        York, North Carolina, South Carolina, South Dakota, Texas, Utah 
        and Vermont. Other states were featured the year before 
        included Minnesota, Pennsylvania and Wisconsin. We work with 
        our local partners in each of those states to help showcase 
        what each location has to offer. The travel agents participate 
        in social media programs while on the trip to learn what the 
        other agents are covering across the different itineraries. 
        They return to their home markets with a greater awareness, 
        enthusiasm and knowledge for each destination and therefore are 
        able to better sell and increase travel to those locations.

        We have also conducted familiarization tours for travel agents 
        and journalists with Delta Airlines, Qantas Airlines, Lufthansa 
        Airlines and are developing similar efforts with several other 
        potential partners.

        Familiarization tours are a great example of in-kind 
        contributions we receive. The airlines we partner with provide 
        plane tickets for travel agents, tour operators, and 
        journalists to participate, and all of the local entities help 
        provide lodging, meals and other activities. Often times 
        smaller establishments are unable to participate in large scale 
        international marketing efforts but can make in-kind 
        contributions as part of these familiarization tours.

        One of the other successes in engaging the travel trade is 
        increasing and improving the presence of U.S. destinations at 
        international trade shows. Prior to our existence, U.S. 
        destinations and entities would attend these shows separately, 
        competing with countries that would have (due to their size and 
        budgets) a much greater presence.

    In creating and hosting Brand USA pavilions, we have brought U.S. 
participants together and given the country the presence that truly 
reflects what the United States has to offer. These pavilions allow 
entities to share a combined space and help reduce the cost of 
participating in these shows as well as creating far more interaction 
with tour operators and travel agents. As a result of our efforts, 
trade show participation by U.S. destinations and entities has 
increased in many markets.
Partnership with Federal Partners
    To efficiently pursue the goals of the National Travel and Tourism 
Strategy, Brand USA and the interagency Tourism Policy Council 
coordinate a variety of activities. These activities, which ultimately 
involve the engagement of nearly a dozen Federal agencies, include 
things like clarifying visa policy and promoting Global Entry, 
promoting Federally-managed areas, and building promotional programs 
with government agencies. Some highlights of this collaborative 
approach include:

   Laid the foundation for strategic marketing collaboration 
        with the Tourism Policy Council--including thematic promotions 
        like culinary and great outdoors and geographic focuses in key 
        markets.

   Developed a program with the Tourism Policy Council 
        Marketing and Promotion Working Group to showcase the culinary 
        travel experiences in the United States, including a culinary 
        guide to inspire travel to the United States, a digital 
        platform, and in-market PR from renowned American chefs.

   Began work with the Departments of Interior, Agriculture, 
        Commerce and the Army Corps of Engineers to promote America's 
        national treasures through a digital focus on the great 
        outdoors and a giant screen feature film that will be produced 
        in time for the Centennial of the National Park Service.

   Collaborated with the Foreign Commercial Service and the 
        State Department to equip diplomatic personnel with high-
        quality marketing materials for embassy facilities and 
        promotional events, including video, poster and banner files.

   Brand USA initiated and completed a redesign of the consular 
        area at U.S. Embassy London to make it a more welcoming 
        environment and distribution information to waiting visa 
        applicants on travel experiences in the United States.

   Brand USA continues to work with U.S. Foreign Commercial 
        Service and State Department personnel on a wide variety of in-
        market activities around the world including trade shows, 
        industry roundtables, trade and sales missions, PR events, and 
        promotional opportunities in markets where Brand USA does not 
        have a presence. These events promote travel to the United 
        States and communicate visa and entry policy and changes to 
        those policies such as ESTA familiarization in places like 
        Taiwan and Chile that recently joined the Visa Waiver Program.

    These highlights only begin to tell the tale of the united front 
that our Federal partners and the travel industry are presenting to the 
world. By leveraging the best of each other's efforts, the National 
Travel and Tourism Strategy is helping our public-private collaboration 
live up to all that it was intended to be.
Conclusion
    In summary, Brand USA is effectively and efficiently fulfilling its 
mission as prescribed by the Travel Promotion Act.
    But our work has only just begun. In fact, the work of Brand USA is 
more important than ever. While we have been able to incrementally 
increase international visitation to the United States, we still have a 
lot of ground to make up to get even close to the market share we once 
enjoyed more than 10 years ago. Between 2000 and 2010, the U.S. share 
of international arrivals dropped 36 percent (from a market share of 17 
percent to 12.4 percent), which equates to a loss of 78 million 
visitors, $606 billion international spend, and support for 467,000 
jobs annually.
    Now in our third full year of operation, Brand USA is demonstrating 
that a nationally coordinated tourism marketing effort through a public 
private partnership can make a significant difference in competing for 
the share of the world travel market. The 1.1 million incremental 
visitors we generated were from just eight markets where we were fully 
deployed last year. Imagine what the results will be as we fully deploy 
our marketing efforts to additional international markets.
    We will continue to build on the success we already have had and 
will continue to operate in an efficient and transparent manner. As we 
continue to grow and increase the number of partners and programs, we 
will help fulfill the goal of the National Travel and Tourism Strategy 
of welcoming 100 million annual visitors by 2021. Our efforts will 
continue to help increase visitation and therefore improve the economy, 
create jobs, increase revenue and exports across the entire country.
    Thank you for the opportunity to testify before you today. I would 
be happy to answer any questions you might have.

    Senator Schatz. Thank you, Mr. Thompson.
    Mr. McCartney?

  STATEMENT OF MIKE McCARTNEY, PRESIDENT AND CHIEF EXECUTIVE 
               OFFICER, HAWAII TOURISM AUTHORITY

    Mr. McCartney. Aloha, Mr. Chairman.
    Senator Schatz. Aloha.
    Mr. McCartney. It is a pleasure and honor to be here before 
you. And on behalf of all your friends back in Hawaii, we are 
very proud that you are chairing this committee, so thank you 
for the opportunity, for all the gentlemen here.
    I would like to introduce Ron Williams, who is in the back 
there. He is the Chair of the Hawaii Tourism Authority.
    So thank you very much. I would like to share a quick story 
with you of where we are at, where we are going, and some 
Federal initiatives that you may be interested in.
    I think, just looking quickly back at 2008, it was a tough 
time for us, a tough time for the country. What happened to 
Hawaii? Five really bad things happened.
    We lost one major airline, ATA. They went bankrupt. We lost 
Aloha Airlines, a neighbor island carrier. We lost 1.4 million 
air seats. We lost 1 million visitors. Oil reached $150 a 
barrel. We had the Lehman Brothers financial meltdown. And we 
had the H1N1 virus.
    It hit us all at once. Our tax revenues went from over $1 
billion coming in from visitors to less than $935 million.
    Slowly, we have climbed back out of it. We now raise about 
$1.7 billion in State tax revenue, because of that, about $15 
billion is generated through our visitor industry. But it was a 
long climb coming back out.
    So when we talk about tourism, I will talk about three 
purposes and then maybe how we can tie into the Federal side.
    I think the lowest level, and best level, to explain is 
jobs and resources. If you look at tourism, it is a great 
export. And for Hawaii, every single day, visitors spend $43 
million out of their pocket, their hard-earned money, private 
capital coming into Hawaii that they spend on a vacation.
    And about $20 million on Oahu, about $11 million in Maui 
County, $6 million in Hawaii County, and about $4 million in 
Kauai County. Every single day. That is about $4.7 million in 
State tax revenue that goes to pay teachers, that funds the 
State budget.
    It supports 175,000 jobs. So for every 49 visitors that get 
off a plane in Hawaii--because you can't drive in; you have to 
get off a plane----
    [Laughter.]
    Mr. McCartney.--it supports one job in our state.
    So it is very, very important, and it provides a way of 
life.
    Number two, it provides access. We only have 1.3 million 
people. We are 2,200 miles away from the nearest land. However, 
we have 10.5 million air seats, probably 11 million by the end 
of this year when you count charter flights.
    You think about that, we have about 920 flights a week, 
from 53 cities around the world directly connected to the 
Hawaiian Islands by 21 different carriers.
    That gives us strategic access to the world. That gives the 
world access to us. And it gives us access to the world.
    When you think about innovation, what a great opportunity 
for higher education, people coming to Hawaii and going to 
school. Just one idea to create innovation off of.
    I think the highest level and highest benefit from tourism 
is it gives us purpose. Some places have mines, and they are 
proud of it. Some places have automobile factories, and they 
are proud of it. Some places have casinos, and they are proud 
of it.
    In Hawaii, we have guests. People, they come and they 
visit. They experience our people. They experience our place. 
They experience our culture.
    Somehow, they go back home a little better than they were. 
We benefit from that because we learn a lot from them.
    So it creates purpose. It creates a sense of purpose of who 
we are. And when you look at travel, it is more than a 
business. And if you look at an ancient Hawaiian proverb that 
was given to us by one of our kupuna, Aunty Pilahi Paki, she 
said, as the world searches for peace, the world will turn to 
Hawaii because Hawaii has the key, and that key is aloha.
    So what we like to think that we are in the business of is 
that we are not just making money. We are not just creating 
jobs. But we are creating this opportunity for peace.
    So when we work with you on the Federal level, we have 
listed about nine priorities that we would like you to maybe 
consider. We know you have been a strong advocate for opening 
up Kona, so I won't go into that.
    We are the fourth largest port of entry for the United 
States. We have grown at 25 percent in international arrivals. 
We need a second port of entry that is certified.
    Right now, if planes come from Japan, they have to clearly 
unload in Honolulu, take everything off the plane, reload, get 
back on the plane, and go to Kona. I think we need a second 
port of entry. We would like to work with you on that.
    We would like to expand opportunities of preclearance in 
Japan. Right now in Canada, you can get off any plane because 
of customs and immigration in Canada. Just imagine if you could 
do that from Japan or Korea.
    They are our allies. They are our trading partners. Why 
wouldn't we want to do that? Why wouldn't we want to give that 
opportunity to each other and use travel as an export?
    There are many ideas that we want to pursue with you, from 
our National Parks to improving our MCI market. We just hosted 
APEC. And as Lynn Wood from the State Department said, there is 
no substitute for face-to-face meetings around the country.
    So we want to promote that market, and we just want to 
continue to work with you as a partner, because we do see it as 
a private-public partnership. Everyone can't do it alone. 
Cities, states, municipalities, the Federal Government, all 
working together, and I think that is the key to our success. 
So America can be a leader in travel and tourism, not only in 
making money and creating jobs, but helping to create peace.
    Thank you very much, Mr. Chairman.
    [The prepared statement of Mr. McCartney follows:]

  Prepared Statement of Mike McCartney, President and Chief Executive 
                   Officer, Hawai`i Tourism Authority
    On behalf of the Hawai`i Tourism Authority (HTA), the State of 
Hawai`i's tourism agency, thank you for the opportunity to present to 
the Subcommittee on Tourism, Competitiveness, and Innovation of the 
United States Senate Committee on Commerce, Science and Transportation, 
on the benefits of international travel to our state and its impact on 
the overall U.S. economy.
    Hawai`i's strategic location connects the Asia Pacific region with 
the United States. Despite our size and geographic location, Hawai`i 
receives 920 flights from 53 cities around the world, making it the 
fourth largest international port of entry in the U.S. Hawai`i also has 
the fifth highest occupancy in the U.S. with a 76 percent average 
statewide, and the second highest hotel average daily rate of $227.
    As a result, tourism is one of the lead economic drivers in the 
state of Hawai`i which generates approximately $14.5 billion in visitor 
expenditures every year, approximately 20 percent of our state's total 
GDP. The tourism industry is also one of the biggest employers in state 
and supports more than 173,000 jobs for residents. This means for every 
1,000 visitors, 20 local jobs are supported.
    In 2013, Hawai`i reached record numbers with year-over-year growth 
in visitor spending (+2 percent to $14.5 billion) and arrivals (+2.6 
percent to 8.2 million), despite slower growth during the second half 
of the year. Through the cyclical pattern of the tourism economy, we 
are anticipating a downturn starting this year, with continual declines 
in spending and arrivals, especially from our core markets.
    Our largest international market, Japan, showed four percent growth 
in arrivals in 2013, with 1.5 million visitors. On an average daily 
basis, Japanese visitors spend more ($280) than U.S West ($155) and 
U.S. East ($200) visitors to Hawai`i.
    Although Japan's economy remains relatively unstable due to a 
recent hike in consumption tax (the first tax increase in 17 years with 
another increase in 2015), there are still opportunities to promote 
travel to Hawai`i and the U.S. in Japan. Nearly 60 percent of Japanese 
visitors to Hawai`i are repeat travelers, mainly from the major 
metropolitan areas. We continue to work with our marketing contractor 
in Japan to target regional areas of the country as well as promote 
first-time travel to all of the Hawaiian Islands.
    In order to balance the softening of our mature U.S. and Japan 
markets, the HTA is focusing on growing and expanding developing 
international markets, especially in ``Other Asia,'' which includes 
Korea, China and Taiwan. While these markets make up a relatively 
smaller market share in comparison to Japan, they continue to show 
significant growth and potential.
    Ease of access through the U.S. visa waiver program in Korea and 
Taiwan, and improvements to the visa process in China have led to a 
rise in outbound travel from these regions. With new direct service and 
nonstop flights connecting these markets to Hawai`i, arrivals from 
Other Asia markets continue to increase year-over-year. In 2013, 
arrivals grew 18.4 percent to 343,327 visitors and we anticipate 
reaching 438,800 arrivals, a 27.8 percent increase in 2014.
    Recent travel trends from Korea to Hawai`i demonstrate how the U.S. 
visa waiver program has helped to stimulate travel. Since being 
implemented in Korea in 2008, arrivals to Hawai`i jumped 350 percent 
from 38,110 to 171,506 visitors. Total expenditures also increased 
substantially from $79.4 million in 2008 to $314.6 million in 2013. And 
we anticipate continual growth in 2014, targeting 190,000 visitors from 
Korea (+10.8 percent) and $350 million (+11.3 percent) in expenditures.
    Implementing the U.S. visa waiver program in Taiwan created 
opportunities for airlift to Hawai`i. In June 2013, China Airlines 
launched its first nonstop flight between Taipei and Honolulu. Within 
one year of implementing the visa waiver program in November 2012, 
visitor arrivals have increased 208 percent.
    These results show the impact of the U.S. visa waiver program in 
supporting travel and validate a need to extend it to other major 
markets.
    We also appreciate the improvements made to the visa process in 
China, where travel demand continues to grow. In 2013, 132,634 Chinese 
visitors (+13.5 percent) came to Hawai`i and spent $329 million in 
total expenditures. As our highest daily spenders (average $397 per 
day), we anticipate total expenditures to increase 37.6 percent in 
2014, with a 21.5 percent increase in visitors, to 180,000.
    Oceania, which include Australia and New Zealand, continues to be 
one of the fastest growing markets for Hawai`i. In 2013, visitor 
arrivals grew 29 percent to 353,965 arrivals, while spending grew 31 
percent to $840 million in annual expenditures. With additional access 
and supplemental marketing efforts by the HTA and its partners, we 
anticipate nearly 11 percent year-over-year growth in arrivals from 
this region in 2014.
    Increasing international arrivals throughout our state is a high 
priority for Hawai`i. The following are initiatives that will help us 
to accomplish this goal and where we would like to request Federal 
support in:

  1.  Enhancing access to Hawai`i through:

     Reestablishing Kona Airport (KOA) on Hawai`i Island as 
            a second international port of entry;

     Expanding border pre-clearance authorization for major 
            international market areas like Japan;

     Allocating Federal funding for airport improvements 
            for Hawai`i's airports;

  2.  Expanding the Visa Waiver Program;

  3.  Reauthorizing the Brand USA initiative;

  4.  Creating Federal tax credits for destination development and 
        upgrades;

  5.  Maintaining investments in our National Parks and other cultural 
        and natural attractions and resources;

  6.  Supporting legislation that will enable tourism workforce and 
        career development;

  7.  Advocating Hawai`i as a meetings, convention and incentive (MCI) 
        destination;

  8.  Sustaining funding and support for the National Oceanic and 
        Atmospheric Administration (NOAA) and its programs in Hawai`i; 
        and

  9.  Developing a public awareness campaign to educate Americans about 
        the importance and benefits of tourism to our country.

    Our Honolulu International Airport (HNL) on the island of O`ahu is 
currently the fourth busiest international airport in the Nation. In 
2013, there were more than 3.6 million international visitors that came 
to Hawaiʻi through HNL. The ability to open a second 
international port of entry would help to alleviate the high traffic at 
U.S. Customs at HNL during peak arrivals from international flights and 
cut down on additional costs and time for interisland transfers.
    Kona Airport, which was previously certified to receive nonstop 
flights from Japan, welcomed 138,539 Japanese visitors via HNL in 2013, 
making it the second most popular destination for this market.
    Granting a five-year exemption to reestablish KOA as a second 
international port of entry will allow us to re-open and develop to 
full potential, a Federal international inspection facility. This 
requires additional staffing of Federal and border control officials. 
The State of Hawai`i Department of Transportation (DOT) is also looking 
at new technology, like Auto Passport Control (APC) kiosks to support 
customs and alleviate the strain on staffing. The APC technology that 
the DOT is considering can help to process up to 162 passengers per 
hour versus 41 passengers by a customs official.
    With Federal Government, the HTA will also work with Hawai`i state 
DOT to facilitate collaborative support with the State, Hawai`i County 
and our industry partners. Reestablishing Kona as a second 
international port of entry and granting border pre-clearance 
authorization in Japan will greatly alleviate strain and resources at 
HNL as well as grow international demand not only for Hawai`i but for 
the U.S., overall.
    We are also working with the Ministry of Land, Infrastructure, 
Transport and Tourism (MLIT) in Japan to discuss the option of 
establishing pre-clearance authorization for international flights from 
Japan to the U.S. The HTA has been in discussions with the MLIT to 
start trial efforts in Narita International Airport in Tokyo, Japan's 
largest international airport, which services 63 flights to Hawai`i per 
week. In order to accomplish this, the U.S. Government would need to 
sign a treaty with the Japanese government.
    While the HTA continues to work with the State of Hawai`i 
Department of Transportation (DOT) to renovate and improve our airports 
statewide, additional Federal funding would help to upgrade our 
facilities in order to accommodate newer aircrafts, like the Airbus 
380. These newer aircraft models offer larger passenger capacity and 
can fly longer distances nonstop, which will help to improve 
international access and promotions.
    Air access is Hawai`i's lifeline and supporting these airlift 
initiatives is essential to sustaining and growing one of the state's 
largest industries. Therefore, we hope that you take into 
consideration, ways to support reestablishing Kona as a second port of 
entry, granting pre-clearance authorization and funding airport 
upgrades in Hawai`i.
    As mentioned above, the Visa Waiver Program is a significant factor 
in stimulating interest in travel abroad and has resulted in 
exponential growth in visitor arrivals and expenditures for Hawai`i 
from developing markets like Korea and Taiwan. By expanding the 
program, we will not only continue to strengthen the Nation's tourism 
economy, but also enhance our global relations.
    We also hope to continue collaborating with the Brand USA team. 
Through working with them and our global marketing contractors, we have 
developed co-op campaigns and been able to better leverage funding and 
resources to increase outreach in our international markets. We 
recently partnered with Brand USA on their ``Discover America Road 
Trip'' campaign, in which they brought a Chinese influencer to help 
promote the unique experiences on O`ahu and Maui. We worked together to 
enroll our partners for co-op support, resulting in extensive exposure 
for our state in China.
    We would also like to propose creating Federal tax credits for new 
hotels and renovations. Mexico and the Caribbean are among our biggest 
competitors, who continue to redevelop and upgrade their accommodations 
and offerings. They are currently developing 260 new projects, which 
translates to 26,000 rooms to accommodate an influx of travelers. In 
order to remain competitive, Hawai`i needs to invest in increasing the 
number of accommodations available to our guests as well as focus on 
upgrading and improving the existing hotel inventory. A tax credit 
would support destination development, and also create jobs not only in 
construction but also support long-term job stability within the 
tourism industry once the finished products are complete.
    Our National Parks and other cultural and natural attractions and 
provide visitors with unique travel experiences. The World War II Valor 
of the Pacific, also known as Pearl Harbor and other attractions like 
the National Memorial Cemetery of the Pacific at Punchbowl and the 
Iolani Palace offer visitors a deeper look at the history and culture 
of our state.
    Growing our meetings, convention and incentive (MCI) market is also 
a priority for the HTA. During the 2011 Asia Pacific Economic 
Cooperation (APEC) Summit, Hawai`i proved to be a world-class MCI 
destination. Our strategic location, connecting Asia Pacific with the 
U.S. makes us an ideal destination for global meetings and we continue 
to work on positioning Hawai`i as the location of choice for 
international meetings and conventions.
    We also encourage you to continue to support the National Oceanic 
and Atmospheric Administration (NOAA), which is a major partner for the 
HTA. As an island state, the sustainability of marine life is a key 
element in our destination appeal. The Hawaiian Islands Humpback Whale 
National Marine Sanctuary is a joint effort between NOAA and the State 
of Hawai`i, which helps to protect one of the world's most important 
humpback whale habitats. Thousands of visitors from around the world 
come to Hawai`i each winter to experience this natural wonder, which 
sets us apart from anywhere else in the world. We need to work together 
to continue to preserve this effort.
    NOAA also supports the Polynesian Voyaging Society and their 
efforts to perpetuate the ancient tradition of Hawaiian voyaging. The 
upcoming world tour of the Hokule`a has not only allowed us to revive 
this tradition but share the Hawaiian culture with the world. Their 
2009 voyage to Japan further fortified our relations through port 
greetings throughout the country. It is important to support the 
preservation of our natural resources as well as our cultural 
traditions that make Hawai`i so unique.
    Thank you and mahalo for allowing us this opportunity to present an 
update on Hawai`i's tourism economy and our efforts in expanding our 
international travel markets. Travel is more than just a business. It 
is a valuable export that allows us to enhance our global relations and 
share our unique people, place and culture that we have not only in 
Hawai`i but in the U.S. Like one of Hawai`i's community leaders, Aunty 
Pilahi Paki once said, ``The world will turn to Hawai`i as they search 
for world peace because Hawai`i has the key . . . and that key is 
aloha.''
    We must continue to work together with our industry partners, 
marketing contractors, government agencies and the Brand USA Team to 
promote travel to the U.S. with aloha. We are all in the same canoe and 
must sail together in the right direction to grow our Nation's tourism 
economy.

    Senator Schatz. Thank you, Mr. McCartney. Thank you for 
making the trip.
    Thank you, Ron, for being here as well.
    Mr. Dean?

               STATEMENT OF BRAD DEAN, PRESIDENT

                  AND CHIEF EXECUTIVE OFFICER,

             MYRTLE BEACH AREA CHAMBER OF COMMERCE

    Mr. Dean. Chairman Schatz, Ranking Member Scott, Senator 
Blunt, thank you for the opportunity to join you today to 
discuss the state of America's travel and tourism industry.
    In my capacity as president of the Myrtle Beach area 
Chamber of Commerce, I serve nearly 3,000 businesses that 
employ 46,000 hardworking Americans in the Palmetto state.
    This hearing as well-timed as communities throughout our 
Nation are celebrating National Tourism Week, a week set aside 
to recognize the very positive impact of travel and tourism on 
our Nation and its people.
    As America recovers from this great recession and grapples 
with the challenge of creating jobs and fueling economic 
growth, I believe that travel and tourism must be a part of the 
national economic solution.
    Myrtle Beach, South Carolina, is a relatively small town 
with only 30,000 residents. And yet, despite that size, we 
welcome more than 15 million visitors each year.
    As you might expect, tourism is our number one industry. It 
sustains two-thirds of our local jobs and generates an economic 
impact of nearly $7 billion.
    It is not just Myrtle Beach that thrives on tourism in 
South Carolina. In my home state, tourism has an annual 
economic impact of nearly $18 billion and sustains one in 10 
jobs throughout South Carolina. From the historical elegance of 
Charleston, to the natural beauty of Hilton Head, to the 
grandeur of the upstate, to the charm of the thoroughbred 
country, and all throughout, a state known for its history, its 
heritage, its hospitality, and very good barbecue, tourism is 
thriving and doing quite well today.
    Industry metrics have improved. Revenues are rising. The 
tax base is growing. Jobs have been created. New businesses 
have opened up. And these jobs, as Roger Dow mentioned, can't 
be outsourced to other countries.
    But while there is much to celebrate during this year's 
National Tourism Week, much remains to be accomplished. As you 
know, many of the jobs lost during this recession will not 
return. Today, too many Americans are either unemployed or 
underemployed.
    Proactive leadership from this Congress and the White House 
is essential to the future success of our travel and tourism 
industry.
    I come before you today to thank you and your peers for 
your leadership on key initiatives that have helped our 
industry rebound. Reductions in wait time for travel visas have 
expanded our visitor base. Creation of Brand USA as part of a 
national promotional strategy has been very impactful, 
generating returns on investment that rival our best marketing 
programs.
    Expanding the use of preclearance processing and 
improvements in security procedures have made travel to the 
U.S. much more enjoyable and more efficient.
    A U.S.-Canadian border agreement in 2012 has helped to grow 
travel to and from our neighbor to the north. And the 
leadership and attention given to tourism by key Federal 
agencies, like the Department of Commerce, have been very 
positive and very impactful.
    But we shouldn't stop here. Much remains to be done. And 
with this in mind, I offer a few simple recommendations today 
that could have a very positive, long-lasting impact on our 
travel and tourism industry.
    Prior to the creation of Brand USA, our Nation was far from 
competitive in international travel. As you are well aware, we 
lost out on a huge surge of global travel in years past, in 
what Roger Dow and others have termed the lost decade of 
tourism.
    But under the leadership of Chris Thompson, Brand USA has 
flourished and delivers a very positive, measurable impact on 
international travel to the U.S. Brand USA allows me and my 
peers in Charleston and Hilton Head to collaboratively promote 
coastal South Carolina in numerous countries throughout the 
world.
    Since our partnership with Brand USA began, we have seen 
double-digit growth in international travel to the U.S. and to 
our community. And that growth, I might add, in our community 
has outpaced domestic growth by nearly 3 times.
    When it comes to Brand USA, I would say to the Senate just 
two simple words: Thank you. And if you would permit me to add 
two more: please reauthorize.
    In addition, if we intend to grow international travel to 
the U.S., we need to greet our visitors with a world-class 
transportation system. As you know better than I, our highways 
are crumbling, airports are crowded, and roadways are jammed.
    We need a transportation plan that begins to address the 
Nation's backlog of construction and maintenance of our roads 
and bridges. As Senator Scott rightly mentioned, Myrtle Beach 
is the busiest vacation destination in America without 
interstate access. Each year, millions of visitors drive to the 
Myrtle Beach area on one four-lane State highway. Our first 
impression and last impression is traffic congestion. And as 
you might imagine, my greatest competitor is my local highway 
system.
    Whether it is completing Interstate 73 in South Carolina, 
modernizing our airports, solidifying the highway trust fund, 
or a variety of other important infrastructure investments, 
transportation infrastructure will create jobs and sustain our 
economy.
    Our Nation's travel and tourism industry has emerged from 
dire economic circumstances, and today it is healthy and 
growing. The recent increases in international tourism are a 
big part of the success, and we can point to the bold 
leadership from Congress and key Federal agencies, advancements 
made in preclearance processes and travel visa processing, 
improved security measures and along with promotional success 
of Brand USA, to understand why all of this has occurred.
    Nevertheless, much remains to be accomplished. 
Reauthorization of Brand USA, investing in infrastructure, and 
a sensible approach to government regulation, will help fuel 
economic growth and job creation.
    I thank you for the opportunity to join you today. On 
behalf of the 46,000 South Carolinians and the Myrtle Beach 
tourism industry, I thank you for your leadership. Like you, I 
believe that great days lie ahead for our Nation. And I believe 
that travel and tourism will be a part of that.
    [The prepared statement of Mr. Dean follows:]

Prepared Statement of Brad Dean, President and Chief Executive Officer, 
                 Myrtle Beach Area Chamber of Commerce
    Chairman Schatz, Ranking Member Scott and distinguished members of 
the Senate Committee on Commerce, Science, and Transportation, thank 
you very much for the opportunity to join you to discuss the state of 
America's travel and tourism industry. I am Brad Dean, President of the 
Myrtle Beach Area Chamber of Commerce, in Myrtle Beach South Carolina. 
In that capacity, I represent nearly 3,000 businesses which employ more 
than 46,000 hard-working Americans. Our organization is a proud member 
of the U.S. Travel Association, the American Hotel and Lodging 
Association and the U.S. Chamber of Commerce.
    I appreciate your invitation to testify on the state of travel and 
tourism and future growth opportunities. This hearing of the 
subcommittee on tourism, competitiveness and innovation is well-timed, 
as communities throughout our nation, in every one of our 50 states, 
are celebrating National Tourism Week, a week dedicated to recognizing 
the significant and positive impact travel and tourism has on our 
Nation and its people. More importantly, as America recovers from the 
Great Recession and grapples with the challenge of creating jobs and 
fueling economic growth, I believe travel and tourism can be a key part 
of the solution.
Background 
    Myrtle Beach, South Carolina is a small town of approximately 
30,000 permanent residents. Several small communities are tied 
economically to the City of Myrtle Beach but the entire population of 
our region is still very small by most standards. Despite our small 
permanent population, the Myrtle Beach area is a major tourism mecca, 
welcoming more than 15 million visitors each year. As you might expect, 
tourism is our number one industry, and it fuels other local industries 
like real estate, construction and retail.
    Visitors come to Myrtle Beach to enjoy the 60 miles of beautiful, 
pristine beaches, 100-plus championship golf courses, and a wide array 
of amusements, attractions, dining, shopping and entertainment options. 
While the activities and amenities are a draw, the Myrtle Beach area 
has been fortunate to enjoy a high repeat visitation rate, due in large 
part to the extraordinary southern hospitality our visitors enjoy 
during each visit. The tourism industry in Myrtle Beach generates an 
annual economic impact of nearly $7 Billion and sustains more than 
73,000 jobs.\1\ In fact, two-thirds of all full-time jobs in our 
community are tied to tourism.
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    \1\ Salvino, Dr. Robert F. 2012. ``The Economic Impact of Tourism 
on the Grand Strand.'' Coastal Carolina University. http://
www.tourismworksforus.com/docs/TourismImpactStudyCCI_5-16-12_final.pdf
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    But it's not just Myrtle Beach that thrives on tourism. In my home 
state of South Carolina, tourism has an annual economic impact of $17.6 
Billion.\2\ Tourism accounts for 10 percent of all jobs in South 
Carolina.\3\ And it's worth noting that tourism jobs can't be 
outsourced to other countries. Suffice to say that tourism is big 
business in my community and throughout our state, as it is in many 
states throughout America. Yet we must be mindful that the travel and 
tourism industry is made up of many small businesses that depend upon 
the flow of commerce created through travel and tourism. For every 
Marriott or Disney or Delta, there are hundreds of small, 
independently-owned businesses that fuel the travel and tourism 
industry and these small businesses create jobs that keep America 
working.
---------------------------------------------------------------------------
    \2\ South Carolina Parks Recreation and Tourism. May 2, 2014. 2013 
Fiscal Analysis.
    \3\ South Carolina Parks Recreation and Tourism. May 2, 2014. 2013 
Fiscal Analysis.
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Tourism Leading the Recovery 
    In my community, tourism has led the economic recovery in recent 
years. Facing a severe economic downturn in 2008 and 2009, we invested 
heavily in additional promotion and tourism-related infrastructure, and 
the results have been astounding. We have experienced three straight 
years of economic growth, propelling our tourism industry to near-
record levels, and the outlook for 2014 is very encouraging. Bear in 
mind, in my community, when tourism grows, tax revenues for schools and 
local governments grow, too, so what's good for tourism is good for 
everyone.
    Likewise, the tourism industry throughout South Carolina has 
rebounded from the recession. Last year, Revenue per Available Room, a 
key measurement in our industry, was up 6.7 percent. Tourism tax 
revenues are rising and many new jobs have been created. Both in my 
community of Myrtle Beach, and throughout South Carolina, our economy 
has improved substantially and tourism has been a key part of that 
economic growth.
    While there is much to celebrate during this 2014 National Tourism 
Week, we should not let the success of the recent past cloud our vision 
of the future, for much remains to be accomplished. As you know, many 
of the American jobs lost during the recession will not return and too 
many Americans remain unemployed or under-employed. For too many years, 
we were not competitive in international travel and tourism, causing us 
to fall further and further behind and largely missing out on a boom in 
global travel, resulting in what Roger Dow, CEO of the U.S. Travel 
Association, in The Wall Street Journal rightly termed the ``Lost 
Decade of Tourism''.\4\ Small businesses today face a growing level of 
regulatory burdens which can stifle growth, even with the best of 
intentions. And, sadly, our transportation infrastructure is failing. 
If we are to grow America's economy, create jobs and successfully 
compete in global trade, we must seize the opportunities that lie 
before us, and growing travel and tourism must be a part of that. The 
businesses that I represent are prepared to do so, and I suspect that 
is true not just in Myrtle Beach, not just in South Carolina, but 
throughout this great nation. But we cannot do this without you. 
Proactive leadership from this Congress, and the White House, is 
essential to the future success of our travel and tourism industry. Mr. 
Chairman, I come before you today to thank you, and your peers, for 
your leadership in key initiatives that have helped our industry. The 
attention given travel and tourism by the U.S. Department of Commerce 
has been superbly managed and administered. Creation of Brand USA, as 
part of a national travel promotion strategy, was necessary and very 
impactful. Expanding the use of pre-clearance processes and travel visa 
waiver programs has positively impacted our industry. A U.S.-Canadian 
border agreement in 2012 helped grow travel to and from our neighbor to 
the north.
---------------------------------------------------------------------------
    \4\ Dow, Roger J. November 21, 2011. ``The Lost Decade of 
Tourism.'' Wall Street Journal.
---------------------------------------------------------------------------
    But let's not stop here. Much remains to be done. With this in 
mind, I come before you today with three simple recommendations that 
could have a very positive, long-lasting impact on travel and tourism 
and, as a result, on our national economy.
Promotion of Travel and Tourism Worldwide 
    Prior to the creation of Brand USA, our Nation was far from 
competitive in international travel. There was no `come visit America' 
message. Advertising and promotion in foreign countries was largely 
limited to top-tier cities and worldwide brands. As a result, 
communities like Myrtle Beach, South Carolina had little or no 
opportunity to compete on the global scale. As it's now baseball 
season, allow me to put this in terms that any baseball fan can 
appreciate: America's international tourism strategy before Brand USA 
was much like trying to hit a major-league fastball using a broom 
handle. You can swing all you want, and every now and then you might 
get lucky, but long-term success is highly improbable, if not 
impossible.
    Under the leadership of Chris Thompson, Brand USA has flourished. 
In addition to promoting the beauty, grandeur and widespread appeal of 
America and all it has to offer, Brand USA has opened up promotional 
doors for communities like mine in countries throughout the world. They 
provide valuable research and generate added-value publicity that far 
exceeds anything we could create on our own. More importantly, they 
allow individual destinations and states to leverage our promotional 
resources in multiple foreign markets. Prior to Brand USA, my efforts 
to promote the Myrtle Beach brand were largely limited to Canada. 
Today, through partnerships with Brand USA, I am able to 
collaboratively promote our brand, along with my peers in Charleston 
and Hilton Head, in numerous countries both in Europe and the Far East. 
Because of Brand USA, our promotional investments generate a much 
higher return-on-investment and we can now leverage our brands in more 
markets.
    Since our partnership with Brand USA began, we have seen double-
digit growth in international travel to the Myrtle Beach area.\5\ In 
fact, the growth in international travel to my community has risen at 
nearly three times the rate of domestic travel. We also now have two 
airlines providing non-stop service from Toronto to Myrtle Beach. When 
it comes to Brand USA I have two words for Congress: Thank You. And, if 
you'll permit me, I have two more words to offer: please reauthorize. 
This program, which does not cost U.S. taxpayers a dime, is helping to 
grow tourism and create jobs, not only in Myrtle Beach, but throughout 
South Carolina and the other forty-nine states.
---------------------------------------------------------------------------
    \5\ Myrtle Beach Area Chamber of Commerce. May 2, 2014. 2009-2013 
Credit Card Expenditure Analysis.
---------------------------------------------------------------------------
Invest In Our Infrastructure 
    In addition, if we intend to market America as the premier place 
for world travelers to vacation, we need to make sure they are greeted 
with a world-class transportation system. You are no doubt aware of the 
delicate situation we face with our Nation's infrastructure. Our 
highways are crumbling and many bridges are not safe. Our airports are 
crowded and our roadways are jammed. This problem was not created 
overnight and it won't be solved overnight, either. But something must 
be done now. Our infrastructure system is largely inadequate for our 
needs today, and the situation is only going to get worse. And while we 
have tremendous prospects for growing travel and tourism, both 
domestically and internationally, if we cannot meet the demands of our 
infrastructure system today, we can safely assume we will not be able 
to seize the opportunity to grow travel and tourism in the future.
    Congress must find an adequate source of funding for the highway 
trust fund which is currently projected to run out in late August. 
Sadly, there is little to trust about this trust fund. Also, Congress 
and the Administration should enact a long-term reauthorization of MAP-
21 which will expire on October 1st. While the President's proposal 
last week was a step in the right direction, much more needs to be 
done. We need the next Federal highway, transit, and safety program 
authorization bill to be a solution that will work for the future and 
begin to address the Nation's backlog of construction and maintenance 
of our roads and bridges.
    Congress should also finish what it began with the interstate 
system. Today, Myrtle Beach South Carolina is the busiest vacation 
destination in America without interstate access. More than 15 million 
visitors travel to our community, with most of them coming during the 
spring and summer months via automobile. Yet we have one four-lane 
state highway that serves as the main thoroughfare. As you might 
expect, the first impression, and last impression, our visitors gain is 
that of congestion and traffic jams. We have used local and state taxes 
to begin the construction of Interstate 73 and only look to Congress to 
reauthorize a highway bill and finish what it began so many years ago 
by completing 35 miles of highway and connecting the Myrtle Beach area 
to the U.S. interstate system. This will create twenty-nine thousand 
jobs, boost tourism, attract new industries and save lives in the event 
of a hurricane.
    Likewise, we should seek to modernize our airports and air travel 
systems. Airport delays at our Nation's gateway airports are becoming 
far too common and will increasingly become a limiter of productivity 
and travel.
Reform Regulatory Process 
    Regulation of business and other industries is necessary and 
appropriate in many instances, but when regulations are issued without 
appropriate consideration of their impact and burdens, they become 
onerous. As a result, businesses, employees and consumers all suffer.
    While the pundits often criticize the gridlock in Congress, this 
apparently has no impact on Federal regulatory activity. According to 
the Competitive Enterprise Institute, the Federal Register finished 
2013 at 79,311 pages, yet there appears to be no slowing down. This 
same report estimates that there are 3,305 regulations in the pipeline, 
191 of which are ``economically significant'', meaning they carry an 
annual cost of at least $100 million.\6\
---------------------------------------------------------------------------
    \6\ Hackbarth, Sean. April 17, 2014. ``Regulation Nation: Federal 
Bureaucracy is as Busy as Ever.'' United States Chamber of Commerce. 
https://www.uschamber.com/blog/regulation-nation-federal-bureaucracy-
busy-ever.
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    Just one example of regulatory changes being discussed that could 
have a tremendous impact on travel and tourism, have been precipitated 
by the Administration's recent memo to the U.S. Department of Labor to 
update of the Fair Labor Standards Act (FLSA),\7\ with the expressed 
goal of rewriting overtime regulations. The tourism industry is labor 
intensive and requires workers that are very flexible in the hours they 
work and the jobs they perform. New unnecessary or burdensome 
requirements that will only serve to raise the cost of labor without 
any foresight as to the overall economic impact of new rules and 
guidelines would weaken the very industry that is helping to lead our 
Nation out of the Great Recession. Similar to the recent Congressional 
Budget Office's report on ``The Effects of Minimum-Wage Increase on 
Employment and Family Income'',\8\ changes to the overtime regulations 
could benefit some and cost others their jobs.
---------------------------------------------------------------------------
    \7\ Obama, President Barack. March 13, 2014. ``Presidential 
Memorandum: Updating and Modernizing Overtime Regulations.'' Memorandum 
to Secretary of Labor Thomas E. Perez.
    \8\ Congressional Budget Office. February 14, 2014. ``The Effects 
of a Minimum-Wage Increase on Employment and Family Income http://
www.cbo.gov/publication/44995
---------------------------------------------------------------------------
    In this era of increasing regulation, some measures exceed sensible 
reform and, occasionally, exceed Congressional intent, as well. Small 
businesses are caught in the cross-hairs and can easily become the 
victim of unintended consequences. We've seen this in Myrtle Beach and 
I suspect we are not alone. Congress, when devising new laws, and the 
administration when implementing them should apply the same, basic 
principle that well-managed businesses and households apply: think 
before you act, and weigh the costs as well as the intended benefits.
Conclusion 
    Our nation's travel and tourism industry has not merely rebounded 
from the dire economic circumstances we faced just a few years ago. 
Today, this industry has emerged from the toughest of times and is 
healthy and growing. And it's no coincidence that America's national 
economy is experiencing similar growth. The recent increases in 
international tourism are a big part of this success, and we can point 
to the leadership from the U.S. Department of Commerce, advancements 
made in pre-clearance processes and border security, along with the 
promotional success of Brand USA, to understand why this has occurred.
    Nevertheless, much remains to be accomplished. Our nation faces 
difficult fiscal circumstances amidst an increasingly competitive 
worldwide marketplace. At the same time, too many Americans remain 
unemployed and some of the jobs lost during the Great Recession will 
not return.
    These are big problems. Yet I believe travel and tourism is part of 
the solution. We can, and I believe we will, reach the objective of 100 
million international visitors annually. But doing so requires 
reauthorization of Brand USA, improvements to our transportation 
infrastructure, and a sensible approach to government regulation.
    I thank you for the opportunity to join you here today. And on 
behalf of the nearly 3,000 businesses I serve and the more than 46,000 
employees I represent, I thank you for your service to our Nation. I, 
and those in the industry in which I am a part of, stand ready, willing 
and able to work with you to help propel America forward. There is no 
doubt we face significant challenges, but thankfully, the problems we 
face are solvable. And the opportunity for success today is 
unprecedented. Like you, I still believe that America's best days lay 
before us, and not behind us, and I thank you for your commitment in 
leading our Nation forward.

    Senator Schatz. Thank you very much, Mr. Dean.
    Before recognizing Senator Scott for questions, we would 
like to recognize Senator Blunt for an opening statement.

                 STATEMENT OF HON. ROY BLUNT, 
                   U.S. SENATOR FROM MISSOURI

    Senator Blunt. Thank you, Chairman. And, Chairman, thank 
you and Senator Scott for leading this committee. We couldn't 
have two people who are more dedicated to the effort of travel 
and tourism, and understand what it means to our economy. Both 
of your states, as Senator Heller's and mine, represent this 
industry as an important part of our overall economy. I am glad 
to have this hearing today.
    All of our states have things to talk about. In my state, 
from Branson to St. Louis, Kansas City, Hannibal, St. Joseph, 
and other places, it makes a difference.
    Just last month, I was pleased to introduce, with our 
colleague that I have worked with on these issues before, 
Senator Klobuchar, the Travel Promotion Enhancement and 
Modernization Act of 2014. We have been joined already in this 
effort by two dozen Senate members, bipartisan in nature. A 
bipartisan companion measure has been introduced in the House 
by Congressman Bilirakis and Congressman Welch.
    This bill would reauthorize the Travel Promotion Act, 
signed into law in 2010 after 5 years of effort.
    Of course, we had a dramatic decline in foreign visitors 
between 2000 and 2010. When you look at the economic 
opportunities before us, nothing is more attainable than more 
foreign visitors, if we just do the right thing.
    That is why I was so pleased to be able to work with Roger 
Dow and his team at U.S. Travel Association, as well as our 
colleagues in the House to pass this. I think in the House, 
when I was there, we actually passed the original authorization 
bill several times. And finally, the Senate caught up and we 
were able to have a bill on the President's desk and got it 
signed into law.
    The centerpiece for the Travel Promotion Act was 
establishing the Corporation for Travel Promotion, known now as 
Brand USA. And, certainly, Brand USA has benefited from the 
leadership of Mr. Thompson. The efforts that have been made at 
Brand USA have been significant.
    Brand USA is a private-public partnership that markets 
American tourism abroad, and keeps international travelers 
informed about our security policies. Other countries have been 
doing this for a long time. We have only been doing it for a 
few years now, but I think with obvious results. Virtually 
every developed nation makes this kind of effort, and the 
United States is finally joining that competition.
    According to a study conducted by Oxford Economics, tourism 
arrivals grew faster than expected from the countries where 
Brand USA did its marketing, generating 1.1 million additional 
international visitors in 2013.
    Foreign visitors spend more. They stay longer. And they 
like us better when they leave, in virtually every single case. 
Just the sheer diplomatic gains from this, the ability to 
extend who we are by sharing who we are with people who visit, 
is by itself, I think, enough of a reason to reauthorize this 
program. But the economic impact, of course, is great as well.
    Brand USA, Mr. Chairman, members of Committee, and the 
people here at this hearing, is not funded by any Federal tax 
dollars. Half of its budget comes from the private sector 
through cash and in-kind contributions. The rest of the budget 
is funded by a nominal fee assessed on international travelers 
in the Visa Waiver Program.
    So this is money that would not be available if people 
weren't traveling. It doesn't involve U.S. taxpayer money. But 
it certainly creates lots of revenue whenever we are part of a 
successful travel and tourism industry.
    Brand USA can't receive these funds without first raising 
private sector contributions. It can only collect up to $100 
million in fees paid by foreign travelers. Any fees collected 
in excess of that cap go to the Treasury. And more than $50 
million has already gone to the Treasury since Fiscal Year 
2012.
    So every traveler that is encouraged to come here actually 
is likely to help us exceed the amount of money that we collect 
to promote travel abroad.
    Anytime Congress passes legislation, we need to keep the 
goal of that legislation in mind. And, clearly, those goals 
have already been stated here in both economic and diplomatic 
terms.
    So I am glad we have this panel here today to talk about 
travel, generally, and foreign travel, specifically.
    And I look forward to an opportunity when we see this 
legislation on the floor and extend the current program that is 
clearly proving it can accomplish exactly what we hoped it 
would accomplish.
    Senator Schatz. Thank you very much, Senator Blunt.
    Senator Scott?
    Senator Scott. Thank you, Mr. Chairman.
    This is a two-part question for Mr. Dean and Mr. Thompson. 
I saw the announcement by WestJet of an increase of flights 
from Toronto to Myrtle Beach this summer. These flights can 
come directly to a smaller airport like Myrtle Beach because of 
the preclearance program that allows travelers to go through 
Immigration and Customs processing before boarding the plane, 
rather than having to connect through a larger international 
airport.
    I was hoping to hear from Mr. Dean about how the Canadian 
market is contributing visitors to South Carolina. And then 
perhaps Mr. Thompson could talk a little bit about the success 
of Brand USA and what it is doing to stimulate the Canadian 
market specifically.
    Mr. Dean. Thank you, Senator. As you point out, the Myrtle 
Beach area has grown its penetration in Canada recently. For 
many years, we welcomed Canadian visitors, but it was typically 
for about an 8-week season. And it was really only those 
Canadians living in Ontario who were willing to make an 18-hour 
drive.
    One of our challenges was to broaden our reach, and not 
simply raise our name I.D. in Canada, but to attract more 
Canadian visitors to the area.
    Through the partnership with Brand USA, we have been able 
to expand our destination awareness not only in Ontario, but 
throughout other areas. Part of the benefit of that has been 
attracting direct air service from Toronto to Myrtle Beach.
    To use a sports analogy, this is a game changer. This 
allows us to bring Canadian visitors not only for 8 weeks out 
of the year but for now 8 months out of the year. And it 
reaches a whole new segment of travelers who wouldn't have come 
to the area before.
    And what we have seen even in the past 12 months is some of 
those Canadians are now buying real estate in the Myrtle Beach 
area and becoming investors. So this is truly helped to expand 
our presence there.
    Part of that are the promotional efforts and support from 
Brand USA. But, Senator, part of that as well is the 
preclearance that has been established, and helps make the 
travel more efficient and more enjoyable when coming to this 
area.
    I daresay, as a small destination that is not a port of 
entry, without that, we would not have much success in 
attracting air service to the Myrtle Beach area. But because of 
preclearance and Brand USA, we have been able to do that.
    Senator Scott. Thank you. That is, certainly, important for 
a community with 30,000 residents and 15 million tourists. The 
importance of the program and its success with preclearance 
really has been illuminated.
    Thank you, Mr. Dean.
    Mr. Thompson?
    Mr. Thompson. Senator, I appreciate the opportunity to talk 
about the Canadian market. It is clearly our number one market. 
We share a border, which obviously explains a lot of that.
    It is also one of our established markets. So if we look at 
our goal of 100 million visitors by 2021, we currently are at 
70 million. In order to get to that goal, we are not going to 
get huge numbers out of Canada because we already enjoy a huge 
market share, not only in South Carolina, Myrtle Beach, but 
many states along the Eastern seaboard, in particular. And the 
Western seaboard, from the Vancouver area, already enjoys great 
Canadian visitation.
    But in order get to the 100 million visitors annual number, 
we have to maintain in our existing markets. So we are deeply 
deployed in Canada. It is not really talking about the dream 
phase of visiting. These are visitors who have been here many 
times. So in a lot of cases, it is asking them to continue to 
come back and go to the destinations that they have been to 
before, but otherwise, explore beyond the gateways and maybe to 
other cities and other states that they haven't been to before.
    And this example is what Brad was talking about as far as 
our partnership. If you look at our ability to be able to find 
ways to add value to what is already there, this is a 
partnership with Brand USA working with our supplier partner in 
this case, which is Myrtle Beach, our buyer partner in this 
case, which is WestJet, to actually leverage the opportunity to 
promote that destination and to bring greater focus to it.
    And I think what Brad would tell you, what he shared with 
me, is the ability to bring in the additional flights and the 
reach has actually expanded their season from what was 5 months 
to 9 months. And he is telling me that with a little more 
promotion, that we are liable to turn it into a year-round 
market.
    So those little success stories are going to allow us to be 
as successful in the markets that have been supporting us for 
so long, but continue to help communities like Myrtle Beach as 
they are trying to expand their international footprint.
    Senator Scott. Thank you, sir.
    I have just a couple minutes left, so I want to get to two 
more questions.
    There is no doubt, Mr. Thompson, that the Brand USA 
activities and program have been very successful. And as we 
think about going from 70 million visitors to 100 million 
visitors, and looking specifically at the in-kind contribution, 
you said earlier that the program has been supported by 3 to 1 
by Members of Congress and 3 to 1 here in the Senate.
    One of the concerns focused on are the in-kind 
contributions, and the GAO reports suggest perhaps that the way 
the in-kind contributions are being counted needs to be done 
better.
    Do you have any comments about what the organization has 
been doing to address those concerns?
    Mr. Thompson. Yes, sir. In particular, those concerns were 
tied to--first of all, our charge is to not only attract cash 
contributions, but in-kind contributions. Those in-kind 
contributions that we get, where we can--for instance, for 
media that is donated to us and there is an invoice tied to 
that media, and it would be what we would have to pay in order 
to replicate that media, that is something that is an easy in-
kind match dollar for dollar.
    When it is, for instance, logo advertising in ads, we have 
a third-party outside source that actually helps us evaluate 
what that is worth to us. And then that is shared with Commerce 
and Treasury, and also vetted by Commerce and Treasury, to be 
able to determine that value.
    That process is what was called into question, and agency 
that we hired initially to bring on board was not done in our 
normal procurement procedures. But since then, we have RFPed 
that process. And we have a regular, ongoing working 
relationship with the Department of Commerce where we literally 
addresses those issues on a daily basis for sure, and at 
minimum twice a year.
    Senator Scott. Thank you.
    Mr. Dow, as you testified, last year we were able to 
attract about 70 million visitors, international visitors, a 
4.7 percent growth rate. For us to achieve a goal of 100 
million visitors, we are going to have to have a slightly 
higher growth rate that is sustained over the next 6 or 7 
years.
    Do you think this growth rate is achievable? And what other 
changes would we need to consider for us to achieve that goal?
    Mr. Dow. It is absolutely achievable.
    Number one, reauthorize Brand USA because it is promoting 
the United States as a travel destination to many international 
markets.
    Two, add more countries to the Visa Waiver Program. There 
are 9 countries that would make a lot of sense, such as Brazil, 
Poland, and Israel. Visa Waiver Program countries increase 
travel and improve security.
    Three, making sure that those low visa wait times for 
interviews stay there. That is what the JOLT Act does in the 
comprehensive immigration bill that moved forward in the 
Senate. We want to make sure either the JOLT Act or the 
immigration bill gets passed, or you attach JOLT to something 
else, because you don't want to lose the gains that you have 
achieved in visa reform.
    And lastly, we have to find a way to make it easier for 
international travelers to come and return to the U.S. easily. 
A lot of them are shifting to--you mentioned Canada. The 
Chinese go to Canada because they can get a 10-year visa. We 
only give them a 1-year visa. They can go to and from Canada 
very easily.
    We don't want to lose those travelers because a lot of them 
are not only leisure travelers, they come here for business, 
and to buy American products.
    Senator Scott. Thank you.
    Final question, Mr. Dean, I was interested in the points 
you brought up about the Federal regulatory environment and its 
impact on local tourism, whether it is a 30-hour workweek, or 
other issues. I would love just to hear you expound a little 
bit on the impact of the regulatory environment and what we can 
do to perhaps stimulate more tourism if we were able to have a 
different secret sauce.
    Mr. Dean. Sure. Thank you, Mr. Scott.
    You know, you referenced some numbers earlier, $2 trillion 
of economic output, and, of course, the tens of millions of 
dollars that come with that. There is no doubt tourism in 
America today is big business.
    But we shouldn't lose sight of the fact that the big 
business of tourism is made up of small businesses.
    I run the largest chamber and CBB in the Carolinas, yet 
four out of five businesses that I represent have 20 employees 
or fewer. So tourism is big business but made up of small 
businesses.
    And oftentimes it seems that the regulation that comes out 
of Washington, while well-intentioned, and in many cases very 
necessary, can also stifle growth in small business, if it is 
not appropriately considered and implemented.
    I think of a recent situation in the Myrtle Beach area 
where it was nothing other than a bizarre overreach by one 
Federal agency that held 3,000 jobs at bay. I realize here in 
Washington, that is probably a rounding error.
    But for me, that wasn't a number. These were friends and 
neighbors and coworkers.
    And with all due respect, I should point out that 
regulatory decision was not made by Congress, and it took 4 1/2 
years and 42 trips to the Nation's capital to rectify that. 
Now, the Congress did rectify that, but the effort it took just 
to solve an issue that never really existed--there was no 
problem to begin with--it was just very challenging for our 
business community.
    You know, if I could wave a magic wand and change one thing 
in Washington today, it would be that Congress when passing 
laws and the administration when implementing them would to 
what well-managed businesses and households do: Think before 
you act, and weigh the consequences as well as the intended 
benefits. And that, with a heavy dose of common sense, I think 
would lead to regulation that would be fruitful for our Nation.
    I noticed the Federal Register last year, I think, ended up 
at over 79,000 pages, but what is alarming to me is that there 
are 3,300 regulations in the pipeline. Many of those are 
economically significant.
    Some of them are very important and necessary. But if we 
are not careful, we could stifle the very growth that all of us 
are working together to try to achieve.
    Senator Scott. Thank you, Mr. Dean.
    Mr. Chairman, thank you for the lavish amount of time that 
you have provided me during this hearing. I haven't had this 
experience previously to talk more than 5 minutes. I appreciate 
being a ranking member under your leadership.
    Senator Schatz. Well, thank Senator Heller for waiting.
    Senator Heller?

                STATEMENT OF HON. DEAN HELLER, 
                    U.S. SENATOR FROM NEVADA

    Senator Heller. Is this a community where we all get 10 
minutes?
    Senator Scott. No, sir.
    [Laughter.]
    Senator Schatz. So ordered.
    Senator Heller. Thank you very much for holding this 
hearing, to both the Chairman and Ranking Member.
    I also want to thank our witnesses for taking time to be 
here today.
    I don't think you can have a discussion on tourism, these 
issues, without someone talking about Nevada and the growth we 
are seeing, especially in Las Vegas. And that is what I would 
like to do today, I would like to give some perspective of what 
is going on in Las Vegas.
    I don't have to defend the importance of tourism for the 
state of Nevada and specifically Las Vegas. We can talk about 
Reno, we can talk about Lake Tahoe, but obviously the hook 
would be in southern Nevada.
    I would say the brand is probably as strong as ever in 
southern Nevada, the Las Vegas area. I think that resonates 
around the world.
    We have seen some pretty good statistics, there is some 
growth. And it is good to see after this recession, because as 
you can imagine, Nevada was hit pretty hard the last 5 years. 
To see the kind of growth we are now seeing in visitations, not 
only domestically but internationally, it plays out quite well.
    Just this past March, we had a record of nearly 3.7 million 
visitors into Las Vegas. The first quarter of this year, 10.2 
million visitors. For the first time, we believe, for 2014, we 
will break the 40 million visitor mark.
    And I think the business community is so confident in the 
future of the growth of Las Vegas that we now have $9 billion 
worth of projects under construction or near construction over 
the next several years.
    So it all bodes very well. I don't think I have to make the 
argument that, as important as tourism is for South Carolina 
and Hawaii, that Las Vegas has been and will continue to be the 
number one meeting and convention destination in North America.
    But I do also want to move over to international 
visitation. We know that international visitors stay longer and 
spend more. And currently 20 percent, or nearly 8 million, of 
our visitors are international. And our goal is to grow that 
international number to 30 percent in Las Vegas over the next 
decade. And that is probably where most of you come in.
    The top three international markets for Las Vegas in 2012, 
it probably doesn't surprise you, are Canada, Mexico, and the 
U.K. But they are followed by Australia, China, Hong Kong, 
France, Germany, South Korea, Brazil, and Japan.
    We want to expand this particular market. Places like 
Brazil show tremendous promise for cities like Las Vegas.
    I know there are hurdles. I want to talk to you about what 
some of these hurdles are. Mr. Thompson, maybe you 
specifically. I wish there were some representatives here from 
the government, but maybe you can enlighten us on what some of 
these hurdles are in order to bring some of these international 
visitors into the country.
    Mr. Thompson. Thank you, Senator. I appreciate the 
opportunity to comment on that.
    Certainly, our focus is on the marketing side of the 
equation, so we want to market, first of all, the opportunity 
and the vast amount of experiences that are provided by our 
destinations and our brands. And if we do our job well enough, 
then that is going to obviously continue to fuel the demand 
that you are talking about that Las Vegas has experienced very 
well.
    I think a lot of what has been highlighted here through my 
colleagues are the issues at hand, both at the national level 
and the local level.
    I think as far as Visa Waiver, the opportunity to be able 
to bring additional countries into Visa Waiver, our ability to 
improve and expand upon the welcoming aspect of the travel and 
tourism industry as it relates to the first impression once 
they get here, particularly in some of the areas that are the 
major chokepoints, are probably two of the main things that 
could contribute significantly to being able to expand not only 
visitation to the entire country, but also to Nevada.
    And I know my colleague, Roger Dow, would be able to speak 
to even more on that.
    Senator Heller. If you could, please.
    Mr. Dow. Yes, Senator. Again, thanks for all your support 
with the JOLT Act and all those things that you are behind.
    The hurdles, I will take Las Vegas and be very specific. 
For example, McCarran International Airport is expanding 
greatly internationally, but PFC funds for McCarran are tapped 
out for the next 40 years, because the passenger facility 
charge is already committed to pay for bonds and future 
projects. If we increase the fee to $8.50, it gives the airport 
a huge opportunity to increase investment and modernize. That 
investment can only be made for capacity, security, airport 
noise, safety, and competition. It can't be used for a 
McDonald's or revenue-generating areas. So funding for airport 
infrastructure is a big hurdle.
    Another hurdle is not having enough Customs and Border 
Protection officers at our gateway airports to process 
international travelers. We applaud the first 2,000 officers 
that were just appropriated, but we need more.
    When you look at the number of visitors we are getting, and 
the goal to attract 100 million, the current CBP staffing 
during peak times can sometimes feel like having one cashier at 
Costco during the holidays. It just doesn't work.
    When these people stand in line for hours, it is a shame. 
They are ticked off before they get to Las Vegas.
    So there are two big hurdles, having enough CBP officers to 
get them through entry and having the opportunity to build 
adequate infrastructure at our airports.
    Senator Heller. I agree. I have stood in those lines, by 
the way. And it can be very frustrating. And I wondered what 
the return rate is, having stood in those lines for so long.
    Going to Brand USA, I think Brand USA has been very 
instrumental to cities like Las Vegas. For that reason, those 
promotion efforts to premier travel destinations, I think, have 
done a great job. And for that reason I have cosponsored the 
legislation and the reauthorization, as you mentioned, Mr. Dow.
    But I guess my question is this, I think there needs to be 
more transparency and accountability. I think CBO came out with 
a report regarding performance indicators, performance 
measures, and addressed concerns regarding the competitive 
procurement process.
    Can you speak on that a little bit, what we have been doing 
to try to improve that, Mr. Thompson?
    Mr. Thompson. Absolutely. Initially, as far as the 
performance indicators that are in place, the main part of our 
emphasis in the first couple years was the launch of our brand 
campaign. As we deployed that in three markets around the 
world, Canada, the U.K., and Japan, our measures on the 
frontend of it was what was our message, how is that 
influencing the intent to travel. So we feel like at our level, 
three times removed from our partners at the city and State 
levels, and in cooperation with our brands, if we can load the 
funnel, we can keep the USA top of mind, that is our ability to 
then have an impact on that.
    What we are now putting into place are not just those broad 
measures, but how do we deploy against specific marketing 
channels. And probably the most obvious example of 
accountability has been the most recent study, which looked at 
the entirety of what we are doing, not just as Brand USA, but 
in partnership with our suppliers and our buyers around the 
world, and that overall ROI that was incremental visitors that 
Senator Blunt talked about, and that I talked about my 
presentation.
    As far as accountability, the GAO really only cited one 
example of where we stepped outside of our procedures, and it 
was in the very early stages of the existence of the 
organization. It was in that ability for us to be able to bring 
forward an outside third party that could help us evaluate our 
in-kind contributions. And there are actually very few 
companies that do that. So in cooperation with the Department 
of Commerce and with Treasury, we actually identified a company 
that could do that. It wasn't a competitive process, but it was 
the best company at the time that could to that.
    But since then, as I mentioned just a while ago, we are 
entering into an RFP process as we speak to actually verify 
that that company is the correct one or to look at others that 
are going to be able to help us.
    Senator Heller. Thank you very much. My time has run out.
    Thank you, Mr. Chairman.
    Senator Schatz. Thank you, Senator Heller. And thank you 
for raising the question of bringing some of our government 
agencies to the table in subsequent hearings. And, certainly, 
Ranking Member Scott and I will be taking a hard look at that, 
so we can get some additional information.
    Thank you to all of the testifiers. I will have some 
additional questions for the record, as well.
    I would like to start with Mr. McCartney.
    You know that Hawaii has been doing travel promotions since 
the 1900s. I would like to ask you if you have any lessons 
learned for the Committee or for Brand USA or U.S. Travel to 
offer to us.
    Mr. McCartney. It is not just marketing. It is putting 
everything together. It is an experience. It is the people, 
place, and culture.
    You can market all you want, but if you don't have a great 
destination, people don't have a good time and enjoy 
themselves.
    When you look at some of the issues of standing in line or 
not getting to their vacation destination as quickly as 
possible, those all have cumulative negative impacts on the 
vacation experience.
    So I think one of the lessons we have learned over the 
years is that you have to provide a great experience. You can 
have all the marketing you want in the world, but if you don't 
provide a great experience, it won't last.
    Number two, I think what we have learned as competitors: We 
have to work together. We all live on an island. We all live in 
the U.S. We all live in the world. We are all going to have to 
work together.
    And there are enough visitors to go around, if we all work 
together and make that happen. We can learn a lot from each 
other. So what we have done in Hawaii, many times, competitors 
work together. And we sit down and we talk about what is good 
for Hawaii, not so much their business, but for Hawaii.
    And we know that if Hawaii grows, their business will grow. 
And I think we see partnership lining up very closely with 
Brand USA.
    Really quickly, Mr. Chair, we are working on a special 
program with Brand USA, where we have a marketing co-op program 
where we have a 3 to 1 match. Now we have a 4 to 1 match 
because we are working closely with them on Japan marketing 
programs. So, for example, Japan travel bureau, instead of us 
getting a $300,000 program, thanks to them, we have a $400,000 
program.
    It helps America. It helps us. It helps improve exports.
    So we are looking to working with each other on how to 
leverage our resources. We are probably going to spend $1 
million on that type of programming as we go forward into the 
future.
    Senator Schatz. Thank you.
    One more question for you, Mr. McCartney, about the Asia-
Pacific region. Can you talk about the potential generally, but 
I am interested for the purposes of the record for you to kind 
of take us through the major targets that you see from an HTA 
standpoint, but also from Brand USA and U.S. Travel.
    Mr. McCartney. There is a PowerPoint in my presentation, 
and it actually gives circles of the major markets. And if you 
were to look at Hawaii's visitor portfolio, we are like a 
mutual fund, and we want to diversify our investments.
    We are diversifying our investments by pivoting to Asia. 
And by pivoting to Asia, we are going to our core market in 
Japan, where we have almost 20 flights a day, and adding direct 
flights from various destinations--Fukuoka, Nagoya, Osaka, 
Haneda, Sapporo. Those are all direct flights.
    We are looking at creating direct access. We are creating 
charter flights where farmers finish their farm season and 
catch a direct flight from their city to Hawaii. Direct access 
is so critical and important.
    Korea, because it is a Visa Waiver country, and we see the 
growth. We have four flights per day now, Hawaiian Airlines 
flights, two Korean Airlines flights, and an Asiana flight. 
Incheon International Airport is one of the best hubs in the 
world. I invite all of you to go there.
    They connect to over 20 cities in China. They connect all 
over Europe. You can catch flights from India there.
    We are expanding to China. I just came back from China last 
week on the first Hawaiian Airlines flight to Beijing. So we 
are having Air China and Hawaiian Airlines go to Beijing, and 
we have China Eastern with direct flights from Shanghai. So we 
have nine flights per week.
    We are also working very aggressively in Oceania. That 
would be Australia. So we are not only going to Sydney but 
Brisbane and Melbourne.
    They are doing well economically because they are selling 
minerals to China. They have disposable income. They love to 
come to Hawaii. So those markets are growing.
    We are expecting almost half a million visitors from 
Oceania. We also have markets growing in Australia.
    We are working hard to expand Taiwan. Taiwan is a new Visa 
Waiver country. We had two carriers, but we are back to one. We 
think that is going to continue to grow. We see growth in Hong 
Kong.
    So Asia has a lot of potential for America. So we talk 
about preclearance. That should be a no-brainer for us. Just as 
Canada is one of our best partners, our greatest ally, so is 
Japan. Why shouldn't we create a relationship with them where 
we can do business with each other? They can fly directly. I 
can see JAL flying directly into Myrtle Beach, getting off the 
plane and having a wonderful experience. It benefits us all.
    I think Hawaii will get our fair share. But I think we need 
to seriously look at that. And that is going to take the work 
of a lot of you. It is going to take work of Senators, because 
it takes a treaty to make that happen.
    The last big treaty that took place was between Shannon, 
Ireland, and the United States, and I wonder what Senator 
helped with that.
    So you are in a position where you can make a great 
difference, and we are in a position where we can help you. All 
our cities, all our States, would benefit. If we work together, 
get a few countries in on preclearance, it could make a big 
difference.
    Senator Schatz. Thank you very much.
    Mr. Dow, I know that U.S. Travel published a report, which 
conveyed to me the urgency on improving the entry process. And 
you provided some of the key findings in your testimony. I am 
wondering whether you wouldn't mind further explaining, 
especially the polling data that I found alarming, that almost 
4 out of 10 visitors would be less likely to come back to the 
United States as a result of the delays. I am wondering if you 
could convey to us some of your findings.
    Mr. Dow. Yes, sir. As we spoke earlier, this is a major 
challenge to overcome, when you have 43 percent of overseas 
travelers saying they would recommend against coming to the 
U.S. The worst news is that those visitors are going to tell 
eight people about their entry experience.
    So you have these people that become tourism terrorists, 
that begin telling their friends don't go there because of 
major delays at airports.
    One in seven people are missing connections. So they get to 
their destinations late or not at all. They think they are 
going on a cruise. Guess what? They can't make their 
connection, so they miss their cruise, or they miss the flight 
to Hawaii, or their flight home.
    Improving our entry process is very, very important. One of 
the things we have to get right, along with the right number of 
officers, is metrics. I applaud many things that CBP is doing. 
They are doing a great job putting together schedules and where 
officers should be deployed.
    But we also need metrics. We need to know, is it working? 
What are the numbers? This is customer satisfaction.
    When you run a business, and you have been a businessman 
yourself, you want to know: Are my customers happy? Are they 
telling their friends they ought to come here, versus telling 
their friends they shouldn't come here?
    Senator Schatz. Thank you very much.
    Senator Blunt?
    Senator Blunt. Well, thank you again for having this 
hearing. I know a couple questions Senator Heller asked were 
questions I would ask. I may have a question or two for the 
record.
    Do we have any indication, I know I had some numbers in my 
testimony, Mr. Thompson, on increases from countries that you 
were advertising in, that Brand USA was active in. Is that 
trend continuing? Do we have any later numbers than 1.1 million 
additional visitors we believe we got from countries where you 
have made your effort?
    Mr. Thompson. No, sir. Thank you for the question. We are 
actually working right now on being able to translate that down 
from the overall 1.1 million incremental visitor number. And a 
lot of that, unfortunately, or fortunately, is tied to the 
Department of Commerce numbers as it relates to our ability to 
be able to account for that.
    We do know that, in the markets we have been very active 
in, on the indicators that we have in place, which is our 
ability to influence intent to travel, which is keeping the USA 
top of mind in a very competitive marketplace with lots of 
promotion and advertising going on from an increasing number of 
countries around the world. What we are looking for now is to 
be able to translate that intent into actual visitation.
    Our first attempt to be able to do that was the study by 
Oxford Economics. They looked at it in a macro way. And now we 
are working with Commerce to figure out how to take the macro 
numbers and put it down to individual countries.
    Senator Blunt. And in terms of the private sector matching 
funds, how do you look at that today after the several years of 
experience we now have had? And what kind of thing do you think 
really should qualify? And what kind of thing would you think 
is less of a matching component to what you are doing?
    Do you have some standards that have changed over the last 
couple years? Would you talk a little bit about that?
    Mr. Thompson. Yes, sir. That is a relationship that we have 
in partnership with the Department of Commerce. Commerce is the 
lead agency as it relates to our relationship with Congress and 
our relationship with the Federal Government. And we have been 
working on those standards for matching, particularly as it 
goes to in-kind, from day one.
    We talk about those on a regular basis. We refine those at 
least a minimum of twice a year.
    I would say that what we have in place right now is pretty 
good. It is actually very strong. We have refined the things 
that have proved to be very valuable both to us and in the eyes 
of Commerce and Treasury. So that has been an ongoing 
relationship.
    And what we are actually finding is the cash contributions, 
that is where people see value in what we are doing in 
marketing the country around the world, have increased 
significantly. In our first year, we brought $26 million of 
cash contributions from industry to the table. Last year it was 
$32 million. We actually expect the current Fiscal Year to 
actually exceed the number from last year.
    So we see a growing confidence by our partners, the 
supplier partners around the country, in what we are doing and 
the value proposition we are creating. And we see great 
strength in the relationship we have with the Department of 
Commerce to make sure that, the resources that we are given by 
the Federal Government, that we spend those in a very efficient 
and effective manner.
    Senator Blunt. And what new countries are you looking at 
that you would want to be making efforts in beyond where you 
are now? Or maybe you just want to concentrate on the decisions 
you already made?
    Mr. Thompson. Out of the gate, we were in Canada, U.K., 
Japan, because those were some of our established market that 
we wanted to maintain our market share. But now, we are 
actively involved in Japan, South Korea, China, Taiwan, Hong 
Kong, India, Australia, New Zealand, Brazil, and Mexico. So we 
have expanded our footprint considerably over the last year.
    We, actually, through our representation or through the 
activity that we have in market, we are actively involved in 30 
major markets around the world that represent 92 percent of the 
inbound travel that comes to the United States. So we feel that 
is a really good footprint now that we got to where we were 
originally planning to get to.
    But now the three keywords that we are operating on is how 
do we continue to collaborate, integrate, and optimize with 
what we are doing. As you can imagine, when I was at the state 
of Florida, 90 percent of the visitation came from around the 
country. So when you were deploying resources domestically, it 
is pretty uniform as far as mediums and opportunities and 
whatnot. But you can imagine, as we are trying to deploy 
resources around the world, we not only have different cultures 
but different mediums within countries.
    So now, what we are trying to do is figure out how to 
optimize our resources against all of those countries and 
different opportunities that they provide.
    Senator Blunt. Thank you.
    Thank you, Mr. Chairman.
    Senator Schatz. Thank you, Senator Blunt. Thank you for 
your leadership on this issue for many, many years, on a 
bipartisan basis.
    I think you have seen from this subcommittee hearing that 
there is strong bipartisan support for this issue, because it 
knows no ideology, because in a lot of ways, what we have to do 
is difficult, but it is not complicated. It may be a real 
challenge for us to be as helpful as we really need to be and 
want to be in the Congress, but there is not very much 
disagreement among members in either chamber or either party.
    The other thing that strikes me is how much private sector 
leadership is required, and there continues to be. So I want to 
thank the testifiers, thank my ranking member, thank Senator 
Blunt for his leadership.
    And we are looking forward to working with you on ongoing 
basis.
    [Whereupon, at 11:12 a.m., the hearing was adjourned.]
                            A P P E N D I X

                       American Hotel & Lodging Association
                                      Washington, DC, April 7, 2014
Hon. Amy Klobuchar,
United States Senate,
Washington, DC.

Dear Senator Klobuchar:

    The American Hotel & Lodging Association, the sole national 
association representing all segments of the 1.8 million-employee U.S. 
lodging industry, commends you for introducing legislation extending 
the Travel Promotion Act of 2009 until FY 2020 and reauthorizing a 
critical tourism promotion entity, BrandUSA.
    BrandAUSA (formerly the Corporation for Travel Promotion) was 
established by the Travel Promotion Act to help attract millions of new 
international visitors, explain U.S. security policies, and promote the 
U.S. as a premier travel destination. It is paid for entirely by 
international travelers and voluntary industry donations; no taxpayer 
money is involved.
    Nearly every other country in the world has an official program to 
welcome international tourists to their nation, and the lack of a 
similar promotional program in the U.S. is preventing us from 
maximizing the number of visitors to our country. Through industry 
efforts like BrandUSA, travel is now increasingly recognized as a 
leading growth industry and a source of valuable jobs that cannot be 
outsourced.
    Between 2011-2012, international travel to the United States 
increased 7 percent to a record 67 million visitors, resulting in the 
U.S. claiming the most tourism receipts (11.7 percent) in the world in 
2012. In 2012, international visitors contributed $180.7 billion in 
travel spending and supported 14.6 million jobs in all 50 states, 
including 7.7 million directly in the travel industry. Reauthorization 
of BrandUSA will help ensure a sustained increase in international 
travelers coming to the U.S. and staying in our hotels, which will 
allow the lodging industry to continue driving this economic activity 
and much needed job creation. Further, we appreciate your efforts to 
include additional transparency and accountability measures to allow 
for the program's success into the future.
    AH&LA and our members across the country thank you for your 
leadership on this issue, and we look forward to working with you to 
make sure BrandUSA is reauthorized.
            Sincerely,

The American Hotel & Lodging Association
Alabama Restaurant & Hospitality Alliance
Alaska Hotel & Lodging Association
Arizona Lodging & Tourism Association
Arkansas Hospitality Association
California Hotel & Lodging Association
Colorado Hotel & Lodging Association
Connecticut Lodging AssociationFlorida Restaurant & Lodging Association
Georgia Hotel & Lodging Association
Hawai`i Lodging & Tourism Association
Illinois Hotel & Lodging Association
Indiana Restaurant & Lodging Association
Louisiana Hotel & Lodging Association
Maine Innkeepers Association
Massachusetts Lodging Association
Michigan Lodging and Tourism Association
Montana Lodging & Hospitality Association
Nebraska Hotel & Motel Association
Nevada Hotel & Lodging Association
New Hampshire Lodging & Restaurant Association
New York Hospitality & Tourism Association
North Carolina Restaurant & Lodging
Association Ohio Hotel & Lodging Association
Oklahoma Hotel & Lodging Association
Oregon Restaurant & Lodging Association
Pennsylvania Restaurant & Lodging Association
Rhode Island Hospitality Association
South Carolina Restaurant & Lodging Association
Tennessee Hospitality Association
Texas Hotel & Lodging Association
The Hawai'I Lodging & Tourism Association
Utah Hotel & Lodging Association
Vermont Chamber of Commerce
Virginia Hospitality & Travel Association
Washington Lodging Association
West Virginia Hospitality & Travel Association
Wisconsin Hotel & Lodging Association
Wyoming Lodging & Restaurant Association
      
                                 ______
                                 
                                   American Bus Association
                                                     Washington, DC
Hon. Gus Bilirakis,
United States House of Representatives,
Washington, DC.

                                    Re: Support for HR 4450

Dear Mr. Bilirakis:

    My name is Clyde J. Hart and I am the Senior Vice President for 
Government Affairs and Policy for the American Bus Association (ABA). 
The ABA is the premier trade association for the private over-the-road 
bus and motorcoach industry. The ABA is home to some 800 bus operator 
companies and also represents some 3200 associations, companies, 
destinations, attractions, hotels and restaurants in the North America. 
Our bus operating companies transports some 640 million passengers 
annually. We transport more passengers in two weeks than Amtrak does in 
one year.
    At the same time ABA is very interested and very engaged in 
promoting travel to the United States as a tourist destination. Our 
membership includes many convention and visitors' bureaus (CVBs) and 
Chambers of Commerce whose mission is to increase tourism to their 
areas. Moreover, ABA membership extends to attractions and destinations 
in Canada. It is because of our mission to grow the motorcoach travel 
industry that we support HR 4450, the Extend the Travel Promotion Act 
of 2009, bill.
    The Travel Promotion Act of 2009 did much to promote travel into 
the United States. It is responsible for bringing 1.1 million tourists 
into the country. The TPA demonstrated the success of a public-private 
partnership in advancing tourism and the need for it. ABA is happy to 
be a part of the coalition of tourism entities to continue the work of 
the TPA.
            Sincerely yours,
                                             Clyde J. Hart,
                                         Senior Vice President for 
                                     Government Affairs and Policy.

Cc: Adam Russell [email protected]
                                 ______
                                 
                                American Gaming Association
                                     Washington, DC, April 17, 2014

Hon. Gus Bilirakis,
United States House of Representatives,
Washington, DC.

Hon. Peter Welch,
United States House of Representatives,
Washington, DC.

Dear Representatives Bilirakis and Welch,

    On behalf of the members of the American Gaming Association, I 
write to express our endorsement of your legislation to strengthen our 
Nation's ability to promote and market that international travelers 
visit the United States. AGA strongly supports the reauthorization the 
Travel Promotion Act and the good work of agency responsible for 
achieving this mission, Brand USA.
    Overwhelmingly approved by Congress in 2010, the Travel Promotion 
Act, which created the public-private partnership Brand USA, helps our 
nation:

   Regain its share of the booming travel market, thereby 
        enhancing U.S. economic growth;

   Spur American job creation--as international travel supports 
        1.2 million American jobs; \1\ and
---------------------------------------------------------------------------
    \1\ Source: U.S. Travel Association

   Advance public diplomacy through better communication of 
        U.S. security policies and clearly articulating that the U.S. 
---------------------------------------------------------------------------
        welcomes international travelers.

    Moreover, all of these benefits come at zero cost to American 
taxpayers, as the costs for Brand USA are underwritten jointly by 
private-sector contributions, which are matched by a $10 fee incurred 
by visitors from Visa Waiver Program nations.
    International business and leisure travel is critical to gaming 
communities across the U.S., as gaming serves is a popular activity 
among international visitors and as many of our Nation's most 
attractive and desirable destinations are also home to casinos.
    The fastest growing inbound travel market, Chinese identify 
``visiting casinos'' as one of the top ten activities during a visit to 
the U.S. With the average Chinese traveler spending more than $7,000 
per visit, it's essential that we're marketing and promoting for these 
and other international visitors to spend their money here rather than 
the other emerging overseas gaming markets, which are located in closer 
proximity and--at times--easier places to visit than the U.S.
    Reauthorizing Brand USA to help market and promote gaming along 
with the myriad benefits of visiting the U.S. is critical to our 
economies continued success and global competitiveness.
    Thank you for championing this legislation and working with 
Senators Klobuchar and Blunt toward a bipartisan, bicameral passage of 
the reauthorization of the Travel Promotion Act and, in turn, Brand 
USA.
    We appreciate your leadership and stand along with our 332,000 
strong gaming employees ready to assist your efforts.
            Sincerely,
                                             Geoff Freeman,
                                                 President and CEO,
                                           American Gaming Association.
                                 ______
                                 
                ASAE--The Center for Association Leadership
                                        Washington, DC, May 8, 2014
Dear Representative Bilirakis:

    ASAE represents more than 21,000 association executives and 
industry partners from nearly 10,000 tax-exempt organizations. Our 
members manage leading trade associat ions, individual membership 
societies, and voluntary organizations in every state as well as in 50 
countries around the globe. Associations are highly supportive of 
policies that facilitate international travel to meetings and 
conventions here in the U.S.
    As a stakeholder in the travel industry, ASAE fully supports your 
bill, H.R. 4450/S. 2250--the Travel Promotion, Enhancement, and 
Modernization Act of 2014. This bipartisan bill will reauthorize Brand 
USA, allowing the public private partnership to continue its critical 
work promoting the U.S. abroad and attracting international travelers 
to our shores.
    International travel is a major economic driver for the U.S. 
economy. When international visitors travel to the United States, they 
inject new money into the U.S. economy by staying in hotels, spending 
in stores, visiting attractions and eating at restaurants. In 2013, 
international visitors to the U.S. spent $180.7 billion, making it the 
leading service export of all U.S. industries.
    While it is clear that travel is helping drive the U.S. economic 
recovery, the benefits could be far greater. The United States' share 
of global international long-haul travel actually fell from 17 percent 
in 2000 to just 13.2 percent in 2013 despite a nearly 60 percent growth 
in overall global travel. While global international travel boomed over 
the last decade, America failed to keep pace. In 2010, Brand USA was 
created by the Travel Promotion Act to reverse this trend and has 
already begun to show an impressive return on investment.
    For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 
were spent by added international visitors. For Fiscal Year 2013 alone, 
Brand USA attracted 1.1million additional international travelers whose 
spending supported more than 53,000 new American jobs. The average 
international visitor spends $4,500 per trip on American goods and 
services in communities across the country.
    This legislation would help the U.S. regain our lost market share 
by allowing Brand USA to continue promoting the U.S. in what has become 
a truly competitive global travel market. Half of Brand USA's budget is 
funded by the private sector, with a match (up to $100 million) 
provided by $10 from a fee assessed on visa-free international 
travelers screened through Department of Homeland Security's Electronic 
System for Travel Authorization (ESTA). Under this funding structure, 
Brand USA benefits the U.S. economy at no cost to American taxpayers.
    I urge you to help us create more American jobs by advancing H.R. 
4450/S. 2250--the Travel Promotion, Enhancement, and Modernization Act 
of 2014, a common sense, bipartisan approach to boosting travel to the 
U.S. and strengthening our economy.
            Sincerely,
                                    John H. Graham IV, CAE,
                                         President and CEO.
                                 ______
                                 
                          American Society of Travel Agents
                                     Alexandria, VA, April 11, 2014
Hon. Amy Klobuchar,
302 Hart Senate Office Building,
Washington, DC.

Hon. Roy D. Blunt,
260 Russell Senate Office Building,
Washington, DC.

Dear Senators Klobuchar and Blunt:

    I am writing on behalf of the American Society of Travel Agents 
(ASTA) to express our full support for the Travel Promotion, 
Enhancement, and Modernization Act of 2014 (S. 2250), bipartisan 
legislation to reauthorize Brand USA.
    ASTA represents 3,300 travel agencies and related travel companies 
who collectively account for 80 percent of the estimated $141 billion 
in travel booked through the travel agency channel in the U.S. Our 
members vary in size from the smallest home-based agent to the large 
travel management companies like Carlson Wagonlit to the household-name 
online agencies like Expedia and Priceline.
    Internationally, we are proud to count among our members nearly 800 
travel agencies in 120 different countries who drive a substantial 
amount of ``inbound'' travel to the U.S., a fact recognized by the 2012 
National Travel and Tourism Strategy, which noted that ``travel agents 
are important sources of trip planning information for many 
international travelers.''
    As such, ASTA strongly supports S. 2250, which will help the U.S. 
recapture our historic share of worldwide overseas travel. We view the 
Travel Promotion, Enhancement, and Modernization Act as essential to 
marketing the U.S. as a desirable destination for international 
tourists, conferences and business, and applaud your commitment to 
generating jobs and economic activity through increased travel. If 
there is anything ASTA can do to help advance this legislation, please 
let us know.
    Thank you for considering ASTA's views on this critical issue. If 
you or your staff have any questions on this or any issue related to 
the travel industry, please don't hesitate to contact me or Eben Peck, 
ASTA's VP of Government Affairs.
            Yours sincerely,
                                                Zane Kerby,
                             President and Chief Executive Officer.
                                 ______
                                 
                                  Business Travel Coalition
                                                       May 16, 2014
Dear Members of Congress,

    As Chairman of the Business Travel Coalition, I urge you to co-
sponsor H.R. 4450/S. 2250--the Travel Promotion, Enhancement, and 
Modernization Act of 2014. Introduced in the House by Representatives 
Gus Bilirakis (R-FL-12) and Peter Welch (D-VT-1) and in the Senate by 
Senators Amy Klobuchar (D-MN) and Roy Blunt (R-MO), this bipartisan 
bill will reauthorize Brand USA, allowing the public-private 
partnership to continue its critical work promoting the U.S. abroad and 
attracting international travelers to our shores.
    International travel is a major economic driver for the U.S. 
economy. When international visitors travel to the United States, they 
inject new money into the U.S. economy by staying in hotels, spending 
in stores, visiting attractions and eating at restaurants. In 2013, 
international visitors to the U.S. spent $180.7 billion, making it the 
leading service export of all U.S. industries.
    While it is clear that travel is helping drive the U.S. economic 
recovery, the benefits could be far greater. The United States' share 
of global international long-haul travel actually fell from 17 percent 
in 2000 to just 13.2 percent in 2013 despite a nearly 60 percent growth 
in overall global travel. While global international travel boomed over 
the last decade, America failed to keep pace. In 2010, Brand USA was 
created by the Travel Promotion Act to reverse this trend and has 
already begun to show an impressive return on investment.
    For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 
were spent by added international visitors. For Fiscal Year 2013 alone, 
Brand USA attracted 1.1 million additional international travelers 
whose spending supported more than 53,000 new American jobs. The 
average international visitor spends $4,500 per trip on American goods 
and services in communities across the country.
    This legislation would help the U.S. regain our lost market share 
by allowing Brand USA to continue promoting the U.S. in what has become 
a truly competitive global travel market. Half of Brand USA's budget is 
funded by the private sector, with a match (up to $100 million) 
provided by $10 from a fee assessed on visa-free international 
travelers screened through Department of Homeland Security's Electronic 
System for Travel Authorization (ESTA). Under this funding structure, 
Brand USA benefits the U.S. economy at no cost to American taxpayers.
    I urge you to help us create more American jobs by co-sponsoring 
H.R. 4450/S. 2250--the Travel Promotion, Enhancement, and Modernization 
Act of 2014, a common sense, bipartisan approach to boosting travel to 
the U.S. and strengthening our economy.
            Sincerely,
                                            Kevin Mitchell,
                                                          Chairman,
                                             Business Travel Coalition.
                                 ______
                                 
                     Cruise Lines International Association
                                       Arlington, VA, April 9, 2014

Hon. Amy Klobuchar,
United States Senate,
Washington, DC.

Dear Senator Klobuchar:

    The Cruise Lines International Association (CLIA) is pleased to 
join with the broader travel and tourism industry in commending your 
leadership in introducing legislation to reauthorize the Travel 
Promotion Act (TPA), and for recognizing the importance of travel and 
tourism to the U.S. economy. The TPA resulted in the creation of Brand 
USA, the Nation's first global marketing initiative to promote travel 
and tourism to and within the U.S.
    CLIA North America is comprised of 26 cruise lines and 10,700 
travel agencies representing more than 35,000 individual travel agents 
and works closely with the U.S. Travel Association and other U.S. 
travel and tourism organizations to encourage travel to United States. 
The expansive U .S. tourism industry seeks to facilitate more travel to 
the U.S. so that it can be a long-term contributor to U.S. economic 
growth. In 2012, the cruise industry provided significant economic 
benefits throughout the U.S., generating $42.3 billion in gross output 
and 356,311 direct and indirect jobs paying $17.4 billion in wages. 
Cruise passenger embarkations at U.S. ports, a number of which are 
international visitors, reached a record 10.1 million, an increase of 
2.5 percent over 2011.
    Brand USA is a catalyst for economic growth and job creation. In 
Fiscal Year 2013, Brand USA generated 1.1 million additional 
international trips to the U.S., an increase of 2.3 percent in inbound 
international travel, and those visitors spent an average of $4,400 per 
visit. Overall, visitors to the U.S. add nearly $130 billion annually 
to the U.S. economy.
    CLIA, along with other travel industry assoiations and , 
businesses, believes that by reauthorizing the Travel Promotion Act, 
the scope and scale of Brand USA's outreach to potential international 
visitors will continue to increase. Even a one percent increase in 
travel from America's top ten inbound travel markets would add more 
than $1 billion per year to the U.S. economy.
    Thank you again for your leadership on this legislation and 
promoting the contributions of travel and tourism to the U.S. economy.
            Sincerely,
                                           Christine Duffy,
                                                 President and CEO.
                                 ______
                                 
            Destination Marketing Association International
                                     Washington, DC, April 24, 2014

    We are writing in support of the reauthorization of Brand USA and 
urge your continued support of The Travel Promotion, Enhancement and 
Moderation Act of 2014 (H.R. 4450 and S. 2250).
    Brand USA (BUSA) is funded by international visitors and private 
contributions--not U.S. taxpayer dollars. Their work promoting the 
United States is essential in contributing to the U.S. economy and 
reducing the deficit. Half of BUSA's budget comes from the private 
sector through cash and in-kind contributions. Many of these 
contributors are members of Destination Marketing Association 
International (DMAI).
    DMAI represents nearly 600 official destination marketing 
organizations across the United States. These organizations are charged 
with promoting their respective destinations and helping the long-term 
development of their communities through a travel and tourism strategy. 
Collectively, these cities, counties and states invest nearly $3 
billion annually to fuel the economy and create jobs. While $3 billion 
is a significant investment collectively, over 50 percent of DMAI 
members have total budgets of less than $1 million. These destinations, 
in particular, are largely reliant on the representation of Brand USA 
to drive high value international traveler dollars to their 
destinations.
    In a recent analysis performed by Oxford Economics, the study 
estimated in FY13 Brand USA generated 1.1 million additional visitors 
who spent an estimated $3.4 billion. A one percent increase in 
visitation from America's top 10 inbound travel markets would add more 
than $1 billion per year to the U.S. economy--thus offsetting taxpayer 
burden in local communities and creating jobs.
    The travel industry's trade surplus is 6.7 percent higher so far 
this year compared to the first two months of last year, far better 
than the 3.4 percent improvement in the U.S. trade balance of other 
goods and services. Without the $10.1 billion travel trade surplus so 
far in 2014, the U.S. overall trade deficit would be 12.4 percent 
larger. As you consider making the necessary Federal budget adjustments 
and investments our Nation needs, we ask you to help preserve the 
economic stability of destinations by supporting the Travel Promotion, 
Enhancement and Modernization Act of 2014, including the 
reauthorization of funding the Brand USA.
            Sincerely,
                                          Michael Gehrisch,
                                                 President and CEO,
                        Destination Marketing Association International
                                 ______
                                 
                                        Disney Destinations
                                  Lake Buena Vista, FL, May 8, 2014

Senator Roy Blunt,
260 Russell Senate Office Building,
Washington, DC.
Senator Amy Klobuchar,
302 Hart Senate Office Building,
Washington, DC.

Dear Senators Blunt and Klobuchar:

    Walt Disney Parks and Resorts is pleased to support your efforts to 
pass the Travel Promotion, Enhancement and Modernization Act (S. 2250).
    Each year, Disney welcomes millions of guests from around the world 
who come to America to make memories that will last a lifetime. We are 
uniquely positioned to understand the added value of organizations like 
Brand USA in increasing visitation. In fact, our positive experience 
with similar public-private partnerships in both Florida and California 
makes us strong advocates for the reauthorization of Brand USA.
    Brand USA is the Nation's first international marketing endeavor to 
promote the United States as a premier travel destination. With a 
mission of increasing international visitation to the United States, 
Brand USA works in close partnership with the travel industry to 
maximize the economic and social benefits of travel.
    This effort has been successful in attracting millions of new 
international visitors to the United States, and these visitors are 
spending billions of dollars during their travels, creating thousands 
of new American jobs each year, at no cost to the U.S. taxpayer. In 
Fiscal Year 2013, Brand USA generated 1.1 million additional 
international trips to the United States, resulting in an estimated 
$3.4 billion in new visitor spending, $7.4 billion in increased 
economic output and $972 million in federal, state and local tax 
revenue. The program also supported 53,000 U.S. jobs and returned an 
estimated $47 in direct economic benefits for every $1spent on travel 
promotion.
    In addition to promoting the United States as a premier travel 
destination through consumer and travel trade marketing, advertising, 
events and promotions, Brand USA partners with the Federal Government 
to communicate U.S. entry and security processes in order to facilitate 
an easier and more welcoming journey into the United States.
    Walt Disney Parks and Resorts supports reauthorization of this very 
important program and applauds your efforts to pass the bipartisan, 
bicameral Travel Promotion, Enhancement and Modernization Act, S. 2250 
and H.R. 4450.
            Sincerely,
                                          Kenneth Svendsen,
                                                         President,
                                            Walt Disney Travel Company,
                                Senior Vice President Global Sales.
                                 ______
                                 
                                  Explore Minnesota Tourism
                                          St. Paul, MN, May 7, 2014
Hon. Amy Klobuchar,
United States Senate, State of Minnesota,
302 Hart Senate Office Building,
Washington, DC.

Dear Senator Klobuchar:

    On behalf of the 245,000 Minnesotans employed in the tourism 
industry, thank you for your leadership on the reauthorization of Brand 
USA.
    In 2010, the Congress overwhelmingly approved the Travel Promotion 
Act to establish a public-private partnership to help regain the U.S. 
share of the global travel market. Brand USA has proven to be 
successful in increasing international visitors to the United States.
    Thank you for introducing the Travel Promotion, Enhancement and 
Modernization Act of 2014 to reauthorize the work of Brand USA to 
promote the United States as an international destination. By 
attracting more visitors, Brand USA enhances U.S. economic growth, 
creates jobs, and advances public diplomacy--all at no cost to 
taxpayers.
    Explore Minnesota's partnership with Brand USA is extremely 
important as we look to increase the number of international visitors 
to our region and Minnesota in particular.
    Explore Minnesota Tourism is proud to support Brand USA and remains 
committed to working with them to create coop marketing programs that 
allow Minnesota's tourism businesses to advertise on a world stage at a 
scale not otherwise possible. We urge Congress to keep this vital 
resource for the U.S. travel and tourism industry by reauthorizing 
Brand USA this year.
            Sincerely,
                                             John F. Edman,
                                                          Director,
                                             Explore Minnesota Tourism.
                                 ______
                                 
          International Association of Amusement Parks and 
                                                Attractions
                                        Alexandria, VA, May 6, 2014

Hon. Amy Klobuchar,
United States Senate,
302 Hart Senate Office Building,
Washington, DC,

Hon. Roy Blunt,
United States Senate,
260 Russell Senate Office Building,
Washington, DC.

Dear Senators Klobuchar and Blunt:

    The International Association of Amusement Parks and Attractions 
(IAAPA) represents more than 4,500 facility, supplier, and individual 
members from more than 90 countries. In the United States, IAAPA has 
members in all 50 states. Member facilities include amusement/theme 
parks, waterparks, attractions, family entertainment centers, arcades, 
zoo, aquariums, museums, science centers, and resorts. We thank you for 
introducing S. 2250 which reauthorizes the ``Travel Promotion, 
Enhancement, and Modernization Act of 2014.''
    Attractions in the United States have an economic impact of nearly 
$219 billion each year. Additionally, in the past ten years, the 
industry has also grown at twice the rate of the U.S. economy 
increasing employment opportunities across the country. Amusement parks 
and attractions are among the top draw for international visitors to 
the U.S.
    The Travel Promotion Act and Brand USA have been extraordinarily 
successful in increasing international tourism in the United States. A 
recent study by Oxford Economics found Brand USA marketing generated 
1.1million incremental trips to the U.S. in 2013 and those visitors 
spent $3.4 billion. The success of the program has also allowed the 
return of $52 million to the United States Treasury in FY2012 and 2013 
from fee collection.
    The reauthorization of Brand USA will allow the program to 
strengthen and build on the success it has already achieved. The bill 
strengthens the oversight for the program, requiring more performance 
metrics and reporting. These changes will allow the program to continue 
to flourish and hopefully work to further increase international 
tourism through 2020.
    IAAPA enthusiastically supports the reauthorization of the Travel 
Promotion Act through S. 2250. Amusement parks and attractions are an 
important sector of the U.S. economy, providing thousands of jobs. The 
industry will only continue to grow and benefit the U.S. economy with 
greater international tourism.
            Sincerely,
                                               Paul Noland,
                                                 President and CEO.
                                 ______
                                 
                                            Mall of America
                                       Bloomington, MN, May 6, 2014

Hon. Amy Klobuchar,
United States Senate,
302 Hart Senate Office Building,
Washington, DC.

Dear Senator Klobuchar,

    Mall of America, ``America's Mall'' and one of the most visited 
attractions in the country, would like to thank you for introducing S. 
2250, the ``Travel Promotion, Enhancement, and Modernization Act.'' 
Tourists, particularly those from international markets have a huge 
positive impact on our local and national economy. Brand USA has been 
instrumental in increasing visitation to the United States since 2011. 
This increase resulted in 53,000 new jobs and a $7.4 billion impact on 
the U.S. economy.
    The international tourist market is the most significant 
opportunity for Mall of America's $1 billion expansion plan over the 
next 10 years. Our research shows an international visitor spends on 
average at least 2.5 times more money per visit to MOA than a local 
shopper and 1.5 more than a U.S. tourist. In addition, for every $1 
international visitors spend at the Mall, they spend at least $3 more 
in the local economy on lodging, car rental, dining, theater, 
professional sports, etc. Brand USA is the critical fuel for MOA to 
achieve this growth through partnership activities.
    At Mall of America we have seen an increase in visitors from China 
due to partner marketing with Brand USA and complementary promotional 
activities. Chinese visitors have quickly become the highest spending 
international tourists in our country. Brand USA is our key to promote 
effectively in China, Brazil, Mexico and many other international 
markets which we otherwise could not.
    Brand USA has another important benefit in that it allows Mall of 
America to partner closely with Explore Minnesota Tourism, the 
Bloomington Convention and Visitors Bureau and other state tourism 
entities through coordinated opportunities. For example, MOA partnered 
with EMT and BCVB last summer to produce in-language promotional videos 
for China, Japan, Brazil, Mexico, Germany and Canada. We are showcasing 
Minnesota's state-wide tourism entities on many websites and through 
social media to international audiences throughout the world. Brand USA 
is the basis for these targeted and effective tourism activities.
    As you know, tourism is a $12.5 billion industry in Minnesota and 
employs 245,000 residents. MOA and other state tourism organizations 
are working closely with EMT to grow tourism to a $20 billion industry 
by 2020. This is an aggressive plan and achievable only with Brand USA 
providing the international marketing platform. A $20 billion state 
tourism industry will produce thousands of new jobs and increase state 
revenue for a multitude of benefits including education, transportation 
and health care.
    It is critical to our economy that we keep marketing the United 
States through Brand USA. Letting the world know that all parts of 
America are full of history, cultural attractions, entertainment, 
unique cuisine and of course, great retail will continue to increase 
visits and create thousands of new jobs.
    S. 2250 would strengthen the United States' position in the global 
travel and tourism market by reauthorizing Brand USA, a vital public-
private partnership that promotes international travel to the U.S. and 
at no cost to taxpayers.
    The travel and tourism industry is an important piece of the 
overall U.S. economy, and Brand USA strengthens that sector by 
encouraging millions of international visitors to come to the U.S., who 
spend billions of dollars in our economy.
    Mall of America thanks you for introducing this important bill and 
for your continued support of our tourism industry.
            Sincerely,
                                     Maureen Hooley Bausch,
                                          Executive Vice President,
                                                       Mall of America.
                                 ______
                                 
                  National Tourism and Heritage Association

Dear Members of Congress:

    As a leader within the travel industry, I urge you to co-sponsor 
H.R. 4450/S. 2250--the Travel Promotion, Enhancement, and Modernization 
Act of 2014. Introduced in the House by Representatives Gus Bilirakis 
(R-FL-12) and Peter Welch (D-VT-1) and in the Senate by Senators Amy 
Klobuchar (D-MN) and Roy Blunt (R-MO), this bipartisan bill will 
reauthorize Brand USA, allowing the public-private partnership to 
continue its critical work promoting the U.S. abroad and attracting 
international travelers to our shores.
    International travel is a major economic driver for the U.S. 
economy. When international visitors travel to the United States, they 
inject new money into the U.S. economy by staying in hotels, spending 
in stores, visiting attractions and eating at restaurants. In 2013, 
international visitors to the U.S. spent $180.7 billion, making it the 
leading service export of all U.S. industries.
    While it is clear that travel is helping drive the U.S. economic 
recovery, the benefits could be far greater. The United States' share 
of global international long-haul travel actually fell from 17 percent 
in 2000 to just 13.2 percent in 2013 despite a nearly 60 percent growth 
in overall global travel. While global international travel boomed over 
the last decade, America failed to keep pace. In 2010, Brand USA was 
created by the Travel Promotion Act to reverse this trend and has 
already begun to show an impressive return on investment.
    For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 
were spent by added international visitors. For Fiscal Year 2013 alone, 
Brand USA attracted 1.1 million additional international travelers 
whose spending supported more than 53,000 new American jobs. The 
average international visitor spends $4,500 per trip on American goods 
and services in communities across the country.
    This legislation would help the U.S. regain our lost market share 
by allowing Brand USA to continue promoting the U.S. in what has become 
a truly competitive global travel market. Half of Brand USA's budget is 
funded by the private sector, with a match (up to $100 million) 
provided by $10 from a fee assessed on visa-free international 
travelers screened through Department of Homeland Security's Electronic 
System for Travel Authorization (ESTA). Under this funding structure, 
Brand USA benefits the U.S. economy at no cost to American taxpayers.
    I urge you to help us create more American jobs by co-sponsoring 
H.R. 4450/
S. 2250--the Travel Promotion, Enhancement, and Modernization Act of 
2014, a common sense, bipartisan approach to boosting travel to the 
U.S. and strengthening our economy.
            Sincerely,
                                              Wayne Ingram,
                             President and Chief Executive Officer,
                             National Tourism and Heritage Association.
                                 ______
                                 
        Springfield Missouri Convention and Visitors Bureau
                                    Springfield, MO, April 11, 2014
Hon. Roy Blunt,
U.S. Senate,
B40C Dirksen Senate Office Building,
Washington, DC.

Dear Senator Blunt,

    Thank you for your role in introducing the Travel Promotion, 
Enhancement and Modernization Act. Reauthorizing Brand USA to continue 
promoting international travel to the United States will help the 
Nation's economy and help keep the economy strong in Missouri.
    Your ongoing support of the travel and tourism industry is 
appreciated and is making a difference for your constituents.
            Sincerely,
                                           Tracy Kimberlin,
                                                     President/CEO.
                                 ______
                                 
                                                Travel Tech
                                        Washington, DC, May 8, 2014

Hon. Amy Klobuchar,
302 Hart Senate Office Building,
Washington, DC.

Hon. Roy D. Blunt,
260 Russell Senate Office Building,
Washington, DC.

Dear Senators Klobuchar and Blunt:

    On behalf of The Travel Technology Association (Travel Tech), the 
association for the online travel industry, I would like to extend our 
full support for the Travel Promotion, Enhancement and Modernization 
Act of 2014 (S. 2250).
    Travel Tech's members include online travel companies Expedia, 
Orbitz, Priceline, Travelocity and Vegas.com and travel technology 
service providers Amadeus, Sabre and Travelport. As travel distributors 
and technology solutions providers to the travel marketplace, our 
members see first-hand how travel and tourism positively impacts our 
local, state and national economies. International visitors spent $181 
billion on U.S. travel-related goods and service in 2013. Congress 
should continue its commitment to growing and enhancing travel to the 
United States by foreign travelers and the reauthorization of Brand USA 
is and has been a successful investment in that endeavor. Brand USA, in 
its unique structure and make-up, must also ensure that American 
taxpayer dollars are used wisely and ensure that taxpayers are getting 
the most from their investment. This includes sound management of the 
organization, strategic deployment of resources, and a continued focus 
on results-based initiatives.
    The recent data reported by Brand USA demonstrates the tangible 
impact of their efforts and the campaign is paying dividends. Based on 
these recent successes and Travel Tech's full backing and support of 
the travel and tourism economy here and around the world, please add 
Travel Tech to the list of supporters for the passage of the Travel 
Promotion, Enhancement and Modernization Act of 2014.
    Please feel free to contact me with any questions about this issue 
or other travel-related topics where Travel Tech may be a resource for 
your continued deliberations.
            Sincerely,
                                              Stephen Shur,
                                                         President.
                                 ______
                                 
                                   U.S. Chamber of Commerce
                                     Washington, DC, April 22, 2014

Hon. Amy Klobuchar,
United States Senate,
Washington, DC.

Hon. Roy Blunt,
United States Senate,
Washington, DC.

Dear Sens. Klobuchar and Blunt:

    The U.S. Chamber of Commerce, the world's largest business 
federation representing the interests of more than three million 
businesses of all sizes, sectors, and regions, as well as state and 
local chambers and industry associations, and dedicated to promoting, 
protecting, and defending America's free enterprise system, thanks you 
for introducing S. 2250, the ``Travel Promotion, Enhancement, and 
Modernization Act.''
    S. 2250 would strengthen the United States' position in the global 
travel and tourism market by reauthorizing Brand USA, a vital public-
private partnership that promotes international travel to the U.S. and 
at no cost to taxpayers. Since it began operations in 2011, Brand USA 
has been a successful driver of increased travel and tourism to the 
U.S., supporting millions of jobs and creating economic growth. In 
fact, Brand USA's activities resulted in a $7.4 billion impact on the 
U.S. economy in Fiscal Year 2013 according to an Oxford Economics 
study.
    The travel and tourism industry is an important piece of the 
overall U.S. economy, and Brand USA strengthens that sector by 
encouraging millions of international visitors to come to the U.S., who 
spend billions of dollars in our economy. The Chamber thanks you for 
introducing this important bill and looks forward to working with you 
on this issue.
            Sincerely,
                                           R. Bruce Josten,
                      Executive Vice President, Government Affairs.
                                 ______
                                 
                                    U.S. Travel Association
                                                      April 4, 2014
Hon. Amy Klobuchar,
United States Senate,
302 Hart Senate Office Building,
Washington, DC.

Hon. Roy Blunt,
United States Senate,
260 Russell Senate Office Building,
Washington, DC.

Dear Senators Klobuchar and Blunt:

    On behalf of the 14.6 million Americans whose jobs are supported by 
travel, I am writing to thank you for introducing the Travel Promotion, 
Enhancement, and Modernization Act of 2014 to reauthorize the work of 
Brand USA to promote the United States as an international destination. 
By attracting more visitors, Brand USA enhances U.S. economic growth, 
spurs job creation and advances public diplomacy--all at no cost to 
taxpayers. We strongly support your legislation.
    In March 2010, the Congress overwhelmingly approved the Travel 
Promotion Act, to establish a public-private partnership--now called 
Brand USA--to help regain the U.S. share of the booming global travel 
market and to better communicate U.S. security policies. The cost is 
underwritten jointly by private sector contributions, matched by a $10 
fee on visitors from Visa Waiver Program nations.
    Because overseas business and leisure travel to the United States 
is critical to local economies across the nation, the President's 
National Travel and Tourism Strategy set an ambitious goal in 2012 of 
attracting 100 million additional international visitors within 10 
years. To help realize this objective, Brand USA has forged working 
relationships with American communities--large and small, urban and 
rural--and leveraged their promotional efforts into a coherent, cost-
effective and successful national marketing campaign.
    According to Oxford Economics, during 2013, Brand USA's worldwide 
marketing campaigns generated 1.1 million incremental visitors to the 
United States--a 2.3 percent increase that generated an additional $3.4 
billion in revenues. This spending generated $7.4 billion in business 
sales, $3.8 billion in GDP and $2.2 billion in personal income, as well 
as supporting 53,000 new jobs. That equates to a remarkable return on 
investment of 47 to 1.
    Travel is already America's top services export. International 
visitors spent nearly $181 billion in the U.S. on travel-related goods 
and services last year, an increase of more than nine percent over 
2012. U.S. travel exports now account for over 26 percent of all U.S. 
service exports and nearly eight percent of total U.S. exports. On 
average, overseas visitors spend $4,500 per trip, yielding a travel 
balance of trade surplus exceeding $50 billion. Moreover, these 
visitors then return home to spread the word about America's 
attractions and hospitality, generating goodwill for years to come.
    That is why we are so enthusiastically supportive of your bill to 
reauthorize Brand USA. Through Brand USA and at no public expense, the 
United States can continue to expand its share of the extraordinarily 
lucrative international travel market. Toward that end, we are very 
pleased that you--with Reps. Welch and Bilirakis, the lead House 
sponsors--are working on a bipartisan, bicameral basis for its 
reauthorization. We appreciate your leadership and stand ready to help 
in any way possible.
            Sincerely,
                                              Roger J. Dow,
                                                 President and CEO,
                                               U.S. Travel Association.
                                 ______
                                 
                            United States Olympic Committee
                                                       May 23, 2014
Hon. Amy Klobuchar,
United States Senate,
302 Hart Senate Office Building,
Washington, DC.

Hon. Roy Blunt,
United States Senate,
260 Russell Senate Office Building,
Washington, DC.

Dear Senators Klobuchar and Blunt:

    On behalf of the United States Olympic Committee (USOC), we would 
like to thank you for introducing the Travel Promotion, Enhancement, 
and Modernization Act of 2014 to reauthorize the work of Brand USA to 
promote the United States as an international destination. By 
attracting more visitors, Brand USA enhances U.S. economic growth, 
spurs job creation, and of particular interest to us, advances public 
diplomacy--all at no cost to taxpayers.
    The United States Olympic Committee is itself an organization 
chartered by Congress through the Ted Stevens Olympic and Amateur 
Sports Act. We are the umbrella organization for 47 Sport National 
Governing Bodies, encompassing sport disciplines competed in at the 
Olympic, Paralympic, and Pan American Games.
    The USOC remains uniquely and actively engaged in international 
travel and security issues with our International Olympic Committee 
(IOC), International Paralympic Committee (IPC), and International 
Sport Federation (IF) counterparts around the globe. We regularly work 
with the Department of Homeland Security and the Department of State to 
facilitate the visa and entry process for athletes, coaches, referees, 
the IOC, IPC, and IF officials during the dozens of competitions and 
conferences hosted in the U.S. annually. Overseas business travel to 
these U.S.-hosted events is not only critical to local economies across 
the nation, but to the vibrancy of the Olympic Movement in general, and 
the sustained competitive excellence of Team USA especially.
    The USOC was supportive in 2012 of the President's National Travel 
and Tourism Strategy, which set an ambitious goal of attracting 100 
million additional international visitors within 10 years. The 
facilitation of the image of the U.S. as a welcoming destination has 
other direct implications--many of those individuals who come to the 
U.S. for the abovementioned competitions and conferences will be in 
decision-making positions about whether major events, such as World 
Championships, World Cups, and even Olympic and Paralympic Games, will 
be hosted in the United States. Hosting these major events can be a 
potential driver for job creation, and these individuals' entry 
experience into the United States will continue to shape their 
perceptions and opinions about how receptive the U.S. is to foreign 
travelers. Positive changes to these perceptions are important 
benchmarks along the path to the U.S. potentially being selected again 
to host the Olympic and Paralympic Games.
    Thank you, again, for introducing this important legislation. We 
enthusiastically support the reauthorization of Brand USA. Through 
Brand USA, and at no public expense, the United States can continue to 
expand its share of the economically vital international travel market. 
We look forward to continuing to support your efforts--and those of 
Representatives Welch and Bilirakis, the lead House sponsors--to move 
this bi-partisan, bi-cameral legislation through Congress. We 
appreciate your leadership and stand ready to be of assistance.
            Sincerely,
                                         Desiree Filippone,
                           Managing Director, Government Relations.
                                 ______
                                 
                   United States Tour Operators Association
                                       New York, NY, April 22, 2014

Senator Amy Klobuchar,
302 Hart Senate Office Building,
Washington, DC.

Dear Senator Klobuchar:

    On behalf of the United States Tour Operators Association (USTOA), 
Iam writing to thank you for introducing the Travel Promotion Act, S. 
2250, which would reauthorize Brand USA through 2020. You have long 
been a great supporter of the travel and tourism industry, and we truly 
appreciate your continued leadership in pushing for important, 
successful programs like Brand USA.
    As the trade association for America's tour operators, USTOA 
strongly supports efforts to build and promote a vibrant travel and 
tourism industry in the U.S. Our industry is a major sector of the 
nationaleconomy,generating $2 trillion annually in economic activity. 
It supports 14.6 million American jobs and has far-reaching economic 
impacts throughout the supply chain. Since it was formed, Brand USA has 
been instrumental in promoting American travel and tourism. We are 
grateful that you recognize the program's success and are proposing to 
reauthorize it through 2020. We are also very encouraged that your bill 
has wide bipartisan support from Senators across the U.S. When it comes 
to creating jobs and improving the economy, Democrats and Republicans 
can agree that the travel and tourism industry presents unique 
opportunities for growth in all fifty states.
    Again, please accept our sincere thanks for introducing the Travel 
Promotion Act.
About USTOA
    The United States Tour Operators Association (USTOA) is a 
professional, voluntary trade association created with the primary 
purpose of promoting integrity within the tour operator industry. USTOA 
was founded in 1972 by a small group of California tour operators 
concerned about tour operator bankruptcies. These founding members 
recognized the need for a unified voice to protect the traveling 
public, as well as to represent the interests of tour operators. In 
1975, USTOA became a nationalorganization with its headquarters in New 
York.
    USTOA Active Members represent an $11 billion industry that 
purchases over $8 billion in goods and services for travel packages. 
Together with its Associate Members they employ over 450,000 U.S. 
citizens.
            Sincerely,
                                                Terry Dale,
                                                 President and CEO,
                              United States Tour Operators Association.
                                 ______
                                 
                                              VISIT FLORIDA
                                                      March 5, 2014

Congressman Gus M. Bilirakis,
2313 Rayburn House Office Building,
Washington, DC.

Dear Rep. Bilirakis:

    On behalf of the nearly 1.1 million Floridians employed in the 
tourism industry, thank you for your leadership on the reauthorization 
of Brand USA.
    Brand USA has proven to be extremely successful in increasing 
international visitation to the United States. A recent Oxford 
Economics report on the impact of Brand USA shows that their marketing 
efforts in 2013 increased inbound international travel to the United 
States by 2.3 percent, spurred $3.4 billion in new visitor 
spending,supported 53,000 jobs and generated $972 million in taxes. 
Brand USA returns $47 in direct economic benefits for every $1 spent on 
travel promotion.
    VISIT FLORIDA's partnership with Brand USA is extremely important 
as we work to establish Florida as the No. 1travel destination in the 
world. Brand USA allows VISIT FLORIDA and our Florida tourism industry 
partners to leverage our international resources, increase our presence 
in the global marketplace and participate in innovative global 
marketing partnerships that could only be implemented on a national 
scale. VISIT FLORIDA was the first destination marketing organization 
to sign on as a Brand USA Founding Partner and because of the value 
that they add to our destination marketing efforts and their success in 
growing the number of international visitors to the U.S. we will 
continue to increase our investment moving forward.
    VISIT FLORIDA is proud to have supported Brand USA from their 
inception and remains committed to working with them to create co-op 
marketing programs that allow Florida's tourism businesses to advertise 
on a world stage at a scale not otherwise possible. We urge Congress to 
keep this vital resource for the U.S. travel and tourism industry by 
reauthorizing Brand USA this year.
            Sincerely,
                                             Will Seccombe,
                                                 President and CEO,
                                                         VISIT FLORIDA.
                                 ______
                                 
                       Hawai`i Tourism Authority
             Hawai`i's Visitor Industry Background and Data

Table of Contents

  1.  Fact Sheet: Context for 2014

  2.  Targets

  3.  Return of Investment

  4.  Airseat Outlook

  5.  Fact Sheets: By Island

      a.  O`ahu

      b.  Maui

      c.  Kaua`i

      d.  Hawai`i Island

  6.  Fact Sheets: by Major Market Area

      a.  North America

      b.  Japan

      c.  Oceania

      d.  China

      e.  Korea

      f.  Taiwan

      g.  Europe

  7.  Appropriations and TAT Allocation
  8.  Powerpoint: Hawai`i's Visitor Industry
  9.  Aloha
                            Context for 2014

    For the first 90 days, we have seen a plateau or leveling off of 
our 2014 arrivals and expenditures which has resulted in:

   Slightly lower numbers than our record 2013 year.

   516 fewer air passenger arrivals per day (-2.3 percent).

   Approximately 215,927 guests on all islands on any given day 
        (-2.1 percent).

   $1.33 less per day in visitor spending in comparison to last 
        year (-3.1 percent).

   An average of $1,854 in visitor spending per trip, $3 more 
        than last year (0.2 percent).

   An average of $42.3 million in total visitor spending per 
        day: $20 million on O`ahu, $11.8 million in Maui County, $4.3 
        million on Kaua`i, $6.1 million on Hawai`i Island, and $156,000 
        by visitors who arrived by cruise ship. This resulted in $406 
        in state tax revenue.

   173,000 jobs annually supported by the tourism industry.

   Fewer arrivals from the U.S. West and East during the first 
        three months of the year. In 2013, 1,240,665 visitors (60 
        percent of all visitors) came to the Hawaiian Islands compared 
        to 1,178,610 (58 percent of all visitors) in 2014.

   Increases in international visitor arrivals during the first 
        three months of the year with 1,282,490 (62 percent of all 
        visitors) in 2013 compared to 1,291,121 (64 percent of all 
        visitors) in 2014.

   5th highest occupancy in the U.S., with 76.2 percent average 
        statewide.

   2nd highest ADR in the U.S., with an average rate of $227.

   Fourth largest international port of air entry in the U.S.

   1.3 million residents and yet more than 11 million air 
        seats.

   920 flights per week from more than 53 cities by 21 
        carriers.
In Summary
    We have to keep on top of the trends for our customers, airlines, 
hotels and destination experiences. What we do in the next five years 
will affect the next 25. Time is short and the list is long. Reopening 
Kona as a secondary international port of entry, creating new inventory 
to growing international markets, and increasing our MCI segment are 
all key initiatives for the HTA.
    We must collectively work together with focus and purpose for the 
long-term sustainability of Hawai`i's tourism economy.
    Our partnerships with Hawai`i Business Round Table, Enterprise 
Honolulu, Hawai`i Chamber of Commerce and the Hawai`i Retail Merchants 
Association will be very powerful, dynamic and helpful as we move 
forward collectively. As will our leadership role with the U.S. Travel 
Association. These collaborations will help us move forward and keep 
tourism, as well as the military and other businesses and industries 
strong, while creating a new vehicle for promoting science and 
innovation to benefit Hawai`i's economy and community.





                                                                Hawaii Tourism Authority
                                      Comparison of Visitor Industry and Economic Indicators to HTA FY Expenditures
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Calendar Year                    2002            2003            2004            2005            2006            2007            2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Arrivals (air + cruise)                6,452,834       6,442,020       6,991,927       7,494,236       7,628,118       7,627,819       6,822,911
Visitor Expenditures (millions $) \1\             $9,994         $10,055         $10,862         $11,904         $12,492         $12,811         $11,399
Visitor Days                                  60,515,052      59,227,930      63,343,173      68,241,986      69,884,925      70,075,021      63,857,378
Per Person Per Day Spending (PPPD$) \1\          $165.15         $169.77         $171.48         $174.44         $178.75         $182.82         $178.51
Length of Stay (LOS)                                9.38            9.19            9.06            9.11            9.16            9.19            9.36
Air Seats (scheduled & charter)                8,252,306       8,557,770       9,317,245      10,024,142      10,361,052      10,190,698       9,162,013
State tax revenues (million $)                   $912.00         $905.40         $950.80       $1,046.50       $1,158.30       $1,220.60       $1,076.30
TAT (FY)                                    $157,634,488    $170,864,689    $181,847,751    $198,774,268    $216,996,215    $224,931,245    $229,377,993
Jobs \2\                                         165,978         167,582         169,062         178,047         175,115         172,416         151,331
Cost per Arrival \3\                               $9.26           $9.82           $9.05           $8.65           $9.27           $9.61          $11.47
ROI: Tax Revenue Generated/HTA                      15.3            14.3            15.0            16.1            16.4            16.6            13.8
 Expenditures
ROI: Visitor Expenditures/HTA                      167.3           158.9           171.6           183.7           176.6           174.7           145.7
 Expenditures
HTA FY Expenditures                          $59,743,471     $63,292,000     $63,292,000     $64,800,411     $70,740,766     $73,327,586     $78,229,323
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                       Hawaii Tourism Authority--Continued
                  Comparison of Visitor Industry and Economic Indicators to HTA FY Expenditures
----------------------------------------------------------------------------------------------------------------
  Calendar Year        2009            2010            2011            2012            2013            2014T
----------------------------------------------------------------------------------------------------------------
Visitor Arrivals       6,517,054       7,018,133       7,299,047       8,028,743       8,235,510       8,443,500
 (air + cruise)
Visitor                   $9,993         $11,066         $12,158         $14,365         $14,735         $15,314
 Expenditures
 (millions $)
 \1\
Visitor Days          60,836,666      65,465,125      68,466,519      74,519,278      75,395,940      76,557,979
Per Person Per           $164.26         $169.04          $177.6          $192.8         $195.44         $200.02
 Day Spending
 (PPPD$) \1\
Length of Stay              9.33            9.33            9.38            9.28            9.15            9.07
 (LOS)
Air Seats              8,676,773       9,299,913       9,392,291      10,322,464      10,896,815      11,086,424
 (scheduled &
 charter)
State tax                $932.46       $1,045.55       $1,324.66       $1,501.21       $1,539.93       $1,600.35
 revenues
 (million $)
TAT (FY)            $210,613,996    $224,242,539    $284,462,891    $323,939,591     368,555,996    $403,048,000
Jobs \2\                 133,618         145,235         155,732         166,480         170,775         177,475
Cost per Arrival          $11.05           $9.85          $10.98           $9.39           $8.40          $10.12
 \3\
ROI: Tax Revenue            12.9            15.1            16.5            19.9            22.3            18.7
 Generated/HTA
 Expenditures
ROI: Visitor               138.7           160.1           151.7           190.6           213.1           179.2
 Expenditures/
 HTA
 Expenditures
HTA FY               $72,029,987     $69,139,336     $80,139,000     $75,375,000     $69,152,000     $85,455,000
 Expenditures
----------------------------------------------------------------------------------------------------------------
T--HTA target (February 2014)
\1\ Includes Supplemental Business Expenditures
\2\ Jobs generated from tourism sector
\3\ Cost is HTA's FY Expenditures

HTA Airline Seat Capacity Outlook for Second Quarter 2014
    The Hawai`i Tourism Authority (HTA), the state's tourism agency, 
forecasts the continued growth of total scheduled nonstop air seats to 
Hawai`i in the second quarter of 2014. The projection is based on 
flights appearing in Diio airline schedules as of March 2014.
    Following a 2.4 percent increase in the first quarter of 2014, 
scheduled nonstop air seats to Hawai`i are expected to grow at a 
slightly faster rate (+3.1 percent) in the second quarter.
    Growth in the second quarter of 2014 is expected to be driven by 
continued increases from international cities (+4.8 percent), along 
with a 2.2 percent increase in domestic seats. Supported by growth in 
both the domestic and international markets, airlines are expected to 
operate more than 2.7 million air seats to the Hawaiian Islands in the 
second quarter, a record high for inbound scheduled capacity to the 
state during the April through June period.

 
------------------------------------------------------------------------
                                     2014 Q2      2013 Q2         %
------------------------------------------------------------------------
TOTAL                                2,740,102    2,659,002         3.1%
DOMESTIC                             1,851,086    1,811,018         2.2%
US WEST                              1,644,857    1,596,995         3.0%
US EAST                                206,229      214,023        -3.6%
INTERNATIONAL                          889,016      847,984         4.8%
JAPAN                                  508,993      481,906         5.6%
CANADA                                  82,282       75,494         9.0%
OTHER ASIA                             127,844      105,178        21.6%
OCEANIA                                105,602      109,798        -3.8%
OTHER                                   64,295       75,608       -15.0%
------------------------------------------------------------------------
Source: Diio Mi Airline Schedules as of March 2014

U.S. West
    Scheduled seats from each of Hawai`i's top core U.S. West gateway 
markets are expected to rise (Los Angeles, +7.9 percent; San Francisco, 
+1.6 percent; Seattle, +6.3 percent), more than offsetting capacity 
reductions from San Jose (-4.0 percent) and smaller markets operated by 
Allegiant (i.e., Eugene, Fresno, Phoenix-Mesa, Santa Maria and 
Spokane). Overall, U.S. West scheduled seat capacity is expected to be 
up 3.0 percent above prior year levels.
U.S. East
    Second quarter seat capacity from the U.S. East market is expected 
to decrease 3.6 percent, as additional service from Dallas (+5.1 
percent) and Houston (+3.9 percent) is offset by reductions in capacity 
from Washington, D.C. (-35.3 percent) and New York (-13.2 percent).
Japan
    Scheduled nonstop seats from Japan are expected to rise 5.6 percent 
in the second quarter, boosted by Japan Airlines' upgrading to larger 
Boeing 777 aircraft on the majority of its flights to Hawai`i, as well 
as an increase in flights out of Tokyo-Narita. United Airlines' 
upgrading from Boeing 777 to larger Boeing 747 aircraft is also 
expected to contribute to the second quarter increase. Notable year-
over-year increases are expected from Osaka (+8.4 percent) and Nagoya 
(+37.1 percent).
Canada
    Nonstop air seats from Canada to Hawai`i are expected to rise 9.0 
percent in the second quarter of 2014, driven by significant increases 
in service to the neighbor islands: Maui (+10.2 percent), Kaua`i (+66.7 
percent) and Hawai`i Island (+50.8 percent).
Other Asia
    Other Asia is expected to be Hawai`i's fastest growing region for 
scheduled air seats during the April through June 2014 period, boosted 
by the launch of nonstop Beijing-Honolulu flights by Air China 
(January) and Hawaiian Airlines (April), and the expansion of Shanghai-
Honolulu service by China Eastern Airlines (+73.2 percent). The 
continuation of nonstop Taipei-Honolulu flights by China Airlines 
(launched in June 2013) and Hawaiian Airlines (launched in July 2013, 
but suspended as of April 2014) will also contribute to the expected 
double-digit increase (+21.6 percent) in seats from the overall Other 
Asia market. Meanwhile, nonstop seats from South Korea are expected to 
decrease 10.1 percent in the second quarter.
Oceania
    After posting double-digit increases in annual air seats every year 
since 2011, air seat growth from Oceania is leveling off with a 
projected 3.8 percent decrease in air seats in the second quarter. 
While scheduled seats from Auckland (+7.3 percent), Brisbane (+8.1 
percent) and Melbourne (+9.7 percent) are all expected to register 
notable year-over-year gains, these increases are expected to be offset 
by an 11.1 percent decrease in capacity from Sydney.
    For more information about the Airline Seat Capacity Outlook or 
other research related reports, please contact:

    Daniel Naaho`opi`i
    Director of Tourism Research
    Hawai`i Tourism Authority
    [email protected]
    www.hawaiitourismauthority.org/research
                   CITY & COUNTY OF HONOLULU OVERVIEW

                                               Visitor Statistics
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
          Honolulu             2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)          587.4       670.4      -12.4%     7,277.9     7,672.5     5,593.1       -5.1%
Visitor Arrivals                 413,425     407,151        1.5%   5,100,169   4,904,045   4,372,181        4.0%
PPPD Spending ($)                  193.2       214.4       -9.9%       205.0       213.9       176.8       -4.2%
----------------------------------------------------------------------------------------------------------------
Source: Hawai`i Tourism Authority
*YTD actuals through January 2014 and January 2013


                                                    Air Seats
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
          Honolulu             2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Domestic Seats                   356,805     351,098        1.6%   4,372,884   4,215,824   3,968,283        6.2%
International Seats              305,403     276,563       10.4%   3,416,433   3,043,155   2,592,284       17.4%
----------------------------------------------------------------------------------------------------------------
Total Seats                      662,208     627,661        5.5%   7,789,317   7,258,979   6,560,567       10.6%
----------------------------------------------------------------------------------------------------------------
Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011
*YTD actuals through January 2014 and January 2013


                            Transient Accommodations Tax to City & County of Honolulu
----------------------------------------------------------------------------------------------------------------
                                FY 2007     FY 2008     FY 2009     FY 2010     FY 2011     FY 2012     FY 2013
----------------------------------------------------------------------------------------------------------------
TAT ($mil)                         44.44       45.32       41.61       39.94       45.39       41.01       41.01
----------------------------------------------------------------------------------------------------------------
Note: City & County of Honolulu receives 44.1% of the TAT revenues distributed to the counties.


                                            HTA Programs and Funding
----------------------------------------------------------------------------------------------------------------
                                            2012                       2013                       2014
----------------------------------------------------------------------------------------------------------------
                                   No. of                     No. of                     No. of
          HTA Programs            Programs      Amount       Programs      Amount       Programs      Amount
----------------------------------------------------------------------------------------------------------------
County Product Enrichment               40       $325,000          28       $310,000          26       $325,000
*Kukulu Ola: Hawaiian Culture            5       $303,323           9       $268,000           8       $220,000
 Community
Major Festivals                          4       $361,000           4       $591,000           4       $591,000
Native Hawaiian Festivals                5       $420,000           5       $420,000           5       $470,000
*Natural Resources Community-            8       $543,448           8       $291,612           7       $234,000
 Based
Safety & Security                        1       $230,000           1       $218,000           1       $272,000
Sporting Events                          6     $5,135,000           7     $5,212,500           7     $5,790,000
**Career Development                     1        $20,000           0            $--           1        $25,000
***O`ahu Visitors Bureau                       $3,269,812                 $3,245,269                 $3,279,269
================================================================================================================
Total HTA Program Funding              $10,607,583
                                       $10,556,381
                                       $11,206,269
----------------------------------------------------------------------------------------------------------------
*In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide
  Hawaiian Culture Community program at $28,000
In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide
  Hawaiian Culture Community program at 138,000.
**In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI)
***HTA provides funding for the Hawai`i Visitors and Convention Bureau. Total amounts are inclusive of leisure,
  MCI, HVCB and international contractors funding.

                          MAUI COUNTY OVERVIEW

                                               Visitor Statistics
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
         Maui County           2014 YTD*   2013 YTD*    change       2013P       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)          366.8       391.6       -6.3%     3,737.5     3,461.2     3,043.8       13.7%
Visitor Arrivals                 195,400     200,937       -2.8%   2,362,629   2,309,194   2,168,487        6.5%
PPPD Spending ($)                  193.2       212.0       -8.9%       194.0       185.5       173.5        6.9%
----------------------------------------------------------------------------------------------------------------
Source: Hawai`i Tourism Authority
*YTD actuals through January 2014 and January 2013


----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
           MOLOKAI             2014 YTD*   2013 YTD*    change       2013P       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)            6.7         4.5        4.4%        30.1        28.3        28.0        1.3%
Visitor Arrivals                   5,143       5,588       -8.0%      55,237      53,323      55,250       -3.5%
PPPD Spending ($)                  193.2       129.7       49.0%       113.7       109.5       108.9        0.5%
----------------------------------------------------------------------------------------------------------------
*Source: Hawai`i Tourism Authority
**YTD actuals through January 2014 and January 2013


----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
            Lanai              2014 YTD*   2013 YTD*    change       2013P       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)            4.4         7.9      -44.3%        87.2        79.6        80.2       -0.7%
Visitor Arrivals                   5,697       6,527      -12.7%      74,526      72,649      75,004       -3.1%
PPPD Spending ($)                  193.2       317.0      -39.1%       334.9       303.1       304.0       -0.3%
----------------------------------------------------------------------------------------------------------------
Source: Hawai`i Tourism Authority
*YTD actuals through January 2014 and January 2013


                                                    Air Seats
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
           Kahului             2014 YTD*   2013 YTD*    change       2013P       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Domestic Seats                   137,709     141,269       -2.5%   1,671,934   1,613,642   1,537,738        4.9%
International Seats               26,704      27,056       -1.3%     171,994     168,399     150,856       11.6%
----------------------------------------------------------------------------------------------------------------
Total Seats                      164,413     168,325       -2.3%   1,843,928   1,782,041   1,688,594        5.5%
----------------------------------------------------------------------------------------------------------------
Source: Diio for 2013 YTD and 2012 YTD, Diio database for whole years 2012 and 2011
*YTD actuals through January 2014 and January 2013


                                 Transient Accommodations Tax (TAT) Distributed
----------------------------------------------------------------------------------------------------------------
                                FY 2007     FY 2008     FY 2009     FY 2010     FY 2011     FY 2012     FY 2013
----------------------------------------------------------------------------------------------------------------
TAT ($mil)                         22.98       23.43       21.51       20.65       23.47       21.20        21.2
----------------------------------------------------------------------------------------------------------------
Note: Maui County receives 22.8% of the TAT revenues distributed to the counties.


                                            HTA Programs and Funding
----------------------------------------------------------------------------------------------------------------
                                            2012                       2013                       2014
----------------------------------------------------------------------------------------------------------------
                                   No. of                     No. of                     No. of
          HTA Programs            Programs      Amount       Programs      Amount       Programs      Amount
----------------------------------------------------------------------------------------------------------------
County Product Enrichment               24       $332,000          22       $305,000          23       $345,000
*Kukulu Ola: Hawaiian Culture            0            $--           0            $--           1       $ 20,000
 Community
Major Festivals                          1       $105,000           1       $105,000           1       $105,000
Native Hawaiian Festivals                2        $60,000           2        $60,000           2        $60,000
*Natural Resources Community-            2        $59,225           4        $90,700           6       $136,000
 Based
Safety & Security                        1        $25,000           1        $46,000           1        $46,000
Sporting Events                          3       $579,000           3       $565,000           3       $565,000
**Career Development                     2        $55,000           0            $--           0            $--
***Maui Visitors & Convention                  $2,906,436                 $2,882,071                 $2,877,071
 Bureau
***Moloka`i Visitors                             $248,782                   $244,741                   $244,741
 Association
**Destination Lana`i                             $144,000                   $143,000                   $143,000
================================================================================================================
Total HTA Program Funding               $4,514,443
                                        $4,441,512
                                        $4,541,812
----------------------------------------------------------------------------------------------------------------
*In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide
  Hawaiian Culture Community program at $28,000
In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide
  Hawaiian Culture Community program at 138,000.
** In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI)
*** HTA provides funding for the Hawai`i Visitors and Convention Bureau and each of the island chapter bureaus.
  Total amounts are inclusive of leisure, MCI, HVCB and international contractors funding.

                         KAUA`I COUNTY OVERVIEW

                                               Visitor Statistics
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
        Kaua`i County          2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)          160.0       136.6       17.1%     1,453.2     1,290.3     1,174.0       12.6%
Visitor Arrivals                  91,161      92,142       -1.1%   1,113,523   1,084,681   1,011,500        2.7%
PPPD Spending ($)                  193.2       175.3       10.2%       171.0       158.0       154.5        8.3%
----------------------------------------------------------------------------------------------------------------
Source: Hawai`i Tourism Authority
*YTD actuals through January 2014 and January 2013


                                                    Air Seats
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
        Kaua`i County          2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Domestic Seats                    48,807      53,603       -8.9%     581,754     575,667     511,660        1.1%
International Seats                5,394       2,158      150.0%      18,514      16,434       7,504       12.7%
----------------------------------------------------------------------------------------------------------------
Total Seats                       54,201      55,761       -2.8%     600,268     589,030     519,164        1.4%
----------------------------------------------------------------------------------------------------------------
Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011
*YTD actuals through January 2014 and January 2013


                                  Transient Accommodations Tax to Kaua`i County
----------------------------------------------------------------------------------------------------------------
                                FY 2007     FY 2008     FY 2009     FY 2010     FY 2011     FY 2012     FY 2013
----------------------------------------------------------------------------------------------------------------
TAT ($mil)                         14.61       14.90       13.68       13.13       14.92       13.48       13.48
----------------------------------------------------------------------------------------------------------------
Note: Kaua`i receives 14.5% of the TAT revenues distributed to the counties.


                                            HTA Programs and Funding
----------------------------------------------------------------------------------------------------------------
                                            2012                       2013                       2014
----------------------------------------------------------------------------------------------------------------
                                   No. of                     No. of                     No. of
          HTA Programs            Programs      Amount       Programs      Amount       Programs      Amount
----------------------------------------------------------------------------------------------------------------
County Product Enrichment               21       $325,000          28       $325,000          24       $350,000
*Kukulu Ola: Hawaiian Culture            1        $40,000           2        $79,000           2        $50,000
 Community
Major Festivals                          1        $63,500           1        $63,500           1        $63,500
Native Hawaiian Festivals                2        $22,200           2        $24,000           1        $20,000
*Natural Resources Community-            2        $64,225           5       $169,372           2        $80,000
 Based
Safety & Security                        1        $56,000           1        $53,000           1        $53,000
Sporting Events                          0            $--           1        $25,000           1        $25,000
**Career Development                     1        $10,000           0            $--           0            $--
***Kaua`i Visitors Bureau                      $2,315,209                 $2,285,893                 $2,280,893
================================================================================================================
Total HTA Program Funding              $ 2,896,134
                                       $ 3,024,765
                                       $ 2,922,393
----------------------------------------------------------------------------------------------------------------
* In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide
  Hawaiian Culture Community program at $28,000
In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide
  Hawaiian Culture Community program at $138,000.
** In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI)
*** HTA provides funding for the Hawai`i Visitors and Convention Bureau and each of the island chapter bureaus.
  Total amounts are inclusive of leisure, MCI, HVCB and international contractors funding.

                        HAWAI`I COUNTY OVERVIEW

                                               Visitor Statistics
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
       Hawai`i County          2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Total Expenditures ($mil)          234.9       217.3        8.1%     1,898.8     1,660.8     1,459.2       13.8%
Visitor Arrivals                 130,059     133,953       -2.9%   1,450,247   1,433,282   1,318,310        8.7%
PPPD Spending ($)                  193.2       181.3        6.6%       177.1       158.9       150.6        5.5%
----------------------------------------------------------------------------------------------------------------
Source: Hawai`i Tourism Authority
* YTD actuals through January 2014 and January 2013


                                                    Air Seats
----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
            Kona               2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Domestic Seats                    55,685      55,884       -0.4%     588,403     609,337     574,934        6.0%
International Seats                6,238       3,832       62.8%      26,311      21,439      11,980       79.0%
Total Seats                       61,923      59,716        3.7%     614,714     630,776     586,914        7.5%
----------------------------------------------------------------------------------------------------------------
Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011
* YTD actuals through January 2014 and January 2013


----------------------------------------------------------------------------------------------------------------
                                                         YTD %                                         % change
            Hilo               2014 YTD*   2013 YTD*    change       2013p       2012        2011       2013/12
----------------------------------------------------------------------------------------------------------------
Domestic Seats                     3,804       4,239      -10.3%      48,588      58,577      37,052       58.1%
International Seats                    0           0          na           0           0           0          na
----------------------------------------------------------------------------------------------------------------
Total Seats                        3,804       4,239      -10.3%      48,588      58,577      37,052       58.1%
----------------------------------------------------------------------------------------------------------------
Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011
* YTD actuals through January 2014 and January 2013


                              Transient Accommodations Tax (TAT) to Hawai`i County
----------------------------------------------------------------------------------------------------------------
                                FY 2007     FY 2008     FY 2009     FY 2010     FY 2011     FY 2012     FY 2013
----------------------------------------------------------------------------------------------------------------
TAT ($mil)                         18.74       19.11       17.55       16.85       19.15        17.3        17.3
----------------------------------------------------------------------------------------------------------------
Note: Hawai`i County receives 18.6% of the TAT revenues distributed to the counties.


                                            HTA Programs and Funding
----------------------------------------------------------------------------------------------------------------
                                            2012                       2013                       2014
----------------------------------------------------------------------------------------------------------------
                                   No. of                     No. of                     No. of
          HTA Programs            Programs      Amount       Programs      Amount       Programs      Amount
----------------------------------------------------------------------------------------------------------------
**County Product Enrichment             22       $357,083          18      $ 329,200          18      $ 328,983
*Kukulu Ola: Hawaiian Culture            1        $45,000           1        $25,000           5        $52,000
 Community
Major Festivals                          1        $63,500           1        $63,500           1        $63,500
Native Hawaiian Festivals                3       $107,500           3       $109,000           4       $125,000
*Natural Resources Community-            2        $60,527           5       $185,258           7       $250,000
 Based
Safety & Security                        1       $123,500           1       $117,500           1       $120,500
Sporting Events                          2       $400,000           3       $390,000           2       $380,000
Workforce Development                    1        $10,000           0            $--           0            $--
***Big Island Visitors Bureau                  $2,265,968                 $2,236,356                 $2,231,356
================================================================================================================
Total HTA Program Funding              $ 3,433,078
                                       $ 3,455,814
                                       $ 3,551,339
----------------------------------------------------------------------------------------------------------------
* In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide
  Hawaiian Culture Community program at $28,000
In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide
  Hawaiian Culture Community program at 138,000.
** The County Product Enrichment Program (CPEP) FY 12 budget is $335,583. In addition, $21,500 was rolled over
  from 2011 & 2010 CPEP budgets.
*** HTA provides funding for the Hawai`i Visitors and Convention Bureau and each of the island chapter bureaus.
  Total amounts are inclusive of leisure, MCI, HVCB and international contractor funding.

                        North America Fact Sheet
North America Overview
    North America continues to be Hawai`i's largest source market for 
visitors. This market includes visitors who travel to the Hawaiian 
Islands from the U.S. West (defined as the 11 Pacific states west of 
the Rockies), U.S. East (all other states) and Canada. As the U.S. 
economy is projected to grow in 2014, demand for travel to the Hawaiian 
Islands from the region remains strong, with domestic air seats 
accounting for 66 percent of total seats to the state. The HTA 
continues to work with the Hawai`i Visitors & Convention Bureau (HVCB), 
its marketing contractor for North America, to reach aggressive targets 
set by the HTA.
2013 Quick Facts

Visitor Expenditures:                                                                             $9.38 billion
Primary Purpose of Stay:                                                 Pleasure (4,499,274) vs. MCI (288,195)
Average Length of Stay:                                                                              10.14 days
First Time Visitors:                                                                                      27.6%
Repeat Visitors:                                                                                          72.4%
 


                                                    U.S. West
----------------------------------------------------------------------------------------------------------------
                                                                             % Change                  % Change
      U.S. WEST MMA (by Air)            2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)      4,142.8      4,640.1      4,772.8         2.9%      4,839.0         1.4%
Visitor Days                         28,768,587   30,471,505   30,733,731         0.9%   30,549,130        -0.6%
Arrivals                              2,994,731    3,178,824    3,219,621         1.3%    3,219,600         0.0%
Per Person Per Day Spending* ($)          144.0        152.3        155.3         2.0%        158.4         2.0%
Per Person Per Trip Spending* ($)       1,383.4      1,459.7      1,482.4         1.6%      1,503.0         1.4%
Length of Stay (days)                      9.61         9.59         9.55        -0.4%         9.49        -0.6%
----------------------------------------------------------------------------------------------------------------


                                                    U.S. East
----------------------------------------------------------------------------------------------------------------
                                                                             % Change                  % Change
      U.S. EAST MMA (by Air)            2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)      3,108.2      3,434.2      3,566.6         3.9%      3,612.9         1.3%
Visitor Days                         17,178,727   17,852,103   17,821,304        -0.2%   17,786,143        -0.2%
Arrivals                              1,642,279    1,699,625    1,698,454        -0.1%    1,698,500         0.0%
Per Person Per Day Spending* ($)          180.9        192.4        200.1         4.0%        203.1         1.5%
Per Person Per Trip Spending* ($)       1,892.6      2,020.6      2,099.9         3.9%      2,127.1         1.3%
Length of Stay (days)                     10.46        10.50        10.49        -0.1%        10.47        -0.2%
----------------------------------------------------------------------------------------------------------------


                                                     Canada
----------------------------------------------------------------------------------------------------------------
                                                                             % Change                  % Change
        CANADA MMA (by Air)             2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)        906.0      1,022.8      1,044.8         2.2%      1,047.5         0.3%
Visitor Days                          6,040,316    6,497,799    6,470,918        -0.4%    6,435,869        -0.5%
Arrivals                                477,564      499,144      509,565         2.1%      519,800         2.0%
Per Person Per Day Spending* ($)          150.0        157.4        161.5         2.6%        162.8         0.8%
Per Person Per Trip Spending* ($)       1,897.1      2,049.0      2,050.4         0.1%      2,015.2        -1.7%
Length of Stay (days)                     12.65        13.02        12.70        -2.5%        12.38        -2.5%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending

Contact Information
Hawai`i Tourism Authority:

Laci Goshi, Tourism Brand Manager
[email protected]

Hawai`i Visitors & Convention Bureau:

Jay Talwar, Senior Vice President, Marketing
Hawaii Visitors & Convention Bureau
2270 Kalakaua Avenue, Suite 801
Honolulu, Hawaii 96815
[email protected]
Market Summary
U.S. West
   In 2013, total expenditures reached $4.77 billion at a 2.9 
        percent YOY increase. The average daily spending increased to 
        $155 per person and total visitor arrivals increased YOY by 1.3 
        percent to 3,219,621.

   For 2014 YTD, visitor expenditures are currently $743 
        million. The average daily spending increased to $158.60 per 
        person and total visitor arrivals are at 454,750. Average 
        length of stay is off to a strong start at 10.3 days.

   Airlift: In 2013, air seats increased YOY by 2.1 percent to 
        6,373,358 scheduled seats.

   As for 2014, domestic seats are forecasted to increase with 
        an estimate of 6,574,021 compared to 6,373,358 in 2013 for U.S. 
        West. Discontinued service from Santa Maria and reduced service 
        from Anchorage, Bellingham, Boise, Eugene, Fresno, Phoenix 
        Mesa, San Jose, Spokane and Stockton are offset by increased 
        service from Denver, Los Angeles, Oakland, Portland, Salt Lake 
        City, San Diego and Seattle.
U.S. East
   In 2013, total expenditures reached $3.57 billion at a 3.9 
        percent YOY increase. The average daily spending increased to 
        $200 per person and total visitor arrivals slightly decreased 
        YOY by -0.1 percent to 1,698,454.

   For 2014 YTD, visitor expenditures are currently $714.7 
        million. The average daily spending increased to $209.60 per 
        person and total visitor arrivals are at 289,877. Average 
        length of stay is targeted at 11.67 days with the 2014 YTD 
        slightly exceeding it at 11.76.

   Airlift: In 2013, air seats increased YOY by 7.8 percent to 
        832,797 scheduled seats.

   As for 2014, air seats are expected to slightly increase 
        with an estimate of 841,059 compared to 832,797 in 2013. 
        Flights out of Washington D.C. have been reduced and there is 
        also a reduction in seats from New York JFK and Chicago. These 
        declines are offset by additional seats out of Dallas and 
        Houston, a result of a shift toward larger aircrafts used for 
        Hawai`i flights.
Canada
   In 2013, total expenditures reached $1.04 billion at a 2.2 
        percent YOY increase. The average daily spending increased YOY 
        by 2.6 percent to $161.50 per person. Total visitor arrivals 
        increased YOY by 2.1 percent to 509,565.

   For 2014 YTD, visitor expenditures are currently at $293.6 
        million. The average daily spending decreased to $154 per 
        person and total visitor arrivals are at 136,400. Average 
        length of stay increased to 13.98 days compared to 13.55 YTD in 
        2013.

   Airlift: In 2013, air seats increased YOY by 1.4 percent to 
        367,825 nonstop seats.

   As for 2014, Canada is expected to grow to 386,517 scheduled 
        air seats to Hawaii, a 5.1 percent increase compared to 2013. 
        WestJet's expanded service from Vancouver to Kona and Lihue 
        from December 2013 has contributed to growth in the market.
Market Conditions

   Overall U.S.

     Slow economic growth.

     ``Affordability'' and ``value'' continue to play a 
            large role in consumer willingness to travel.

     While demand for travel to Hawai`i remains strong 
            among U.S. air leisure travelers, rising travel prices 
            continue to play a factor with converting this demand into 
            actual Hawai`i vacations.

     After the U.S. Consumer Confidence Index showed 
            increases for December 2013 and January 2014, it decreased 
            to 78.1 in February.

     Unemployment rate showing gradual improvement.

     U.S. housing market showing slow improvement.

     U.S. GDP increased at an annual rate of 2.4 percent in 
            the fourth quarter of 2013.

     U.S. mainland continues to be Hawai`i's single largest 
            air service market, accounting for approximately 66 percent 
            of scheduled seats to the state.

   Canada

     Canadian outbound travel is expected to grow, but at a 
            more modest pace than previous years.

     Canadian consumer confidence showing gradual 
            improvement.

     Unemployment rate remains low.

     A strong housing market, especially in the Vancouver 
            target market.

     Canada GDP increased at an annual rate of 0.7 percent 
            in the fourth quarter of 2013.

     A slightly unfavorable exchange rate.

                                                         Visitor Statistics 2008-2014 U.S. West
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
       U.S. WEST MMA (by Air)            2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)       3,897.3      3,468.2      3,913.3      4,142.8      4,640.1      4,772.8         2.9%      4,839.0         1.4%
Visitor Days                          26,649,336   26,027,984   27,966,613   28,768,587   30,471,505   30,733,731         0.9%   30,549,130        -0.6%
Arrivals                               2,769,229    2,718,818    2,924,430    2,994,731    3,178,824    3,219,621         1.3%    3,219,600         0.0%
Per Person Per Day Spending* ($)           146.2        133.3        139.9        144.0        152.3        155.3         2.0%        158.4         2.0%
Per Person Per Trip Spending* ($)        1,407.4      1,275.6      1,338.2      1,383.4      1,459.7      1,482.4         1.6%      1,503.0         1.4%
Length of Stay (days)                       9.62         9.57         9.56         9.61         9.59         9.55        -0.4%         9.49        -0.6%
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                        U.S. East
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
       U.S. EAST MMA (by Air)            2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)       3,225.1      2,694.6      2,876.4      3,108.2      3,434.2      3,566.6         3.9%      3,612.9         1.3%
Visitor Days                          17,586,975   16,271,465   16,815,125   17,178,727   17,852,103   17,821,304        -0.2%   17,786,143        -0.2%
Arrivals                               1,683,114    1,561,468    1,610,421    1,642,279    1,699,625    1,698,454        -0.1%    1,698,500         0.0%
Per Person Per Day Spending* ($)           183.4        165.6        171.1        180.9        192.4        200.1         4.0%        203.1         1.5%
Per Person Per Trip Spending* ($)        1,916.1      1,725.7      1,786.1      1,892.6      2,020.6      2,099.9         3.9%      2,127.1         1.3%
Length of Stay (days)                      10.45        10.42        10.44        10.46        10.50        10.49        -0.1%        10.47        -0.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                         Canada
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
        CANADA MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)         710.6        628.8        745.7        906.0      1,022.8      1,044.8         2.2%      1,047.5         0.3%
Visitor Days                           4,632,068    4,396,325    5,143,821    6,040,316    6,497,799    6,470,918        -0.4%    6,435,869        -0.5%
Arrivals                                 359,580      346,583      405,040      477,564      499,144      509,565         2.1%      519,800         2.0%
Per Person Per Day Spending* ($)           153.4        143.0        145.0        150.0        157.4        161.5         2.6%        162.8         0.8%
Per Person Per Trip Spending* ($)        1,976.1      1,814.3      1,841.1      1,897.1      2,049.0      2,050.4         0.1%      2,015.2        -1.7%
Length of Stay (days)                      12.88        12.68        12.70        12.65        13.02        12.70        -2.5%        12.38        -2.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending


                                                     North America: Distribution by Island U.S. West
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
       U.S. WEST MMA (by Air)            2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                  1,254,836    1,255,017    1,317,632    1,318,505    1,393,321    1,434,369         2.9%    1,357,756        -5.3%
Maui                                     979,253      931,078    1,032,190    1,047,825    1,109,708    1,113,539         0.3%    1,139,777         2.4%
Moloka'i                                  25,414       20,682       20,612       22,010       21,709       22,839         5.2%       22,423        -1.8%
Lana'i                                    30,858       24,650       27,920       30,501       29,468       29,952         1.6%       30,752         2.7%
Kaua'i                                   515,378      482,732      485,698      517,849      553,222      565,920         2.3%      562,910        -0.5%
Hawai'i Island                           526,192      506,052      527,689      547,724      574,246      564,267        -1.7%      639,721        13.4%
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                        U.S. East
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
       U.S. EAST MMA (by Air)            2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                  1,029,778      960,985      968,056      976,305    1,015,673    1,011,752        -0.4%      976,566        -3.5%
Maui                                     655,435      570,831      595,701      606,430      622,452      626,933         0.7%      630,804         0.6%
Moloka'i                                  20,984       15,788       15,264       17,032       14,918       15,447         3.5%       15,204        -1.6%
Lana'i                                    29,364       23,303       24,656       26,998       24,902       24,598        -1.2%       25,641         4.2%
Kaua'i                                   351,478      306,976      313,675      320,096      338,756      339,095         0.1%      340,097         0.3%
Hawai'i Island                           402,908      352,734      353,065      366,155      380,022      383,917         1.0%      417,714         8.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                         Canada
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
        CANADA MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                    195,034      168,911      195,472      223,283      209,380      213,986         2.2%      209,788        -2.0%
Maui                                     179,139      170,754      197,722      237,434      255,602      259,426         1.5%      269,930         4.0%
Moloka'i                                   6,735        3,751        3,349        4,276        3,927        3,931         0.1%        4,171         6.1%
Lana'i                                     6,128        4,623        4,664        4,801        4,735        5,293        11.8%        5,081        -4.0%
Kaua'i                                    51,356       44,638       54,627       64,128       66,205       68,249         3.1%       69,264         1.5%
Hawai'i Island                            73,060       67,122       75,137       87,703       96,274       96,677         0.4%      110,275        14.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          CALENDAR YEAR                      1ST QUARTER                       2ND QUARTER                       3RD QUARTER                       4TH QUARTER
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
US West                                                          6,574,021   6,373,358     3.1%    1,575,711   1,587,388    -0.7%    1,644,521   1,596,995     3.0%    1,766,567   1,656,217     6.7%    1,587,222   1,532,758     3.6%
US East                                                            841,059     832,797     1.0%      205,317     202,894     1.2%      206,229     214,023    -3.6%      224,444     217,034     3.4%      205,069     198,846     3.1%
Canada                                                             386,517     367,825     5.1%      163,860     152,496     7.5%       82,282      75,494     9.0%       44,431      41,995     5.8%       95,944      97,840    -1.9%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

North America: Group vs. FIT; Leisure vs. Business

                                                    U.S. West
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
   U.S. WEST MMA (by Air)        2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                      71,623      51,795      56,211      55,697      54,556      57,539        5.5%
  True Independent             2,132,943   2,097,624   2,243,921   2,313,576   2,517,281   2,590,586        2.9%
 
Leisure vs business
  Pleasure (Net)               2,229,622   2,226,385   2,408,309   2,474,356   2,644,238   2,678,581        1.3%
    MCI (Net)                    146,822     123,627     119,814     128,335     128,014     134,079        4.7%
    Convention/Conf.              90,514      82,138      76,839      76,799      78,401      81,185        3.6%
    Corp. Meetings                36,236      26,856      27,890      33,760      32,710      34,550        5.6%
    Incentive                     24,695      18,309      18,863      22,302      21,071      23,378       10.9%
----------------------------------------------------------------------------------------------------------------


                                                    U.S. East
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
   U.S. EAST MMA (by Air)        2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                     105,006      72,499      69,661      79,006      79,493      79,079      090.5%
  True Independent             1,207,278   1,138,678   1,157,985   1,185,636   1,260,957   1,619,375       28.4%
 
Leisure vs business
  Pleasure (Net)               1,290,209   1,209,145   1,252,562   1,271,468   1,332,544   1,342,467        0.7%
  MCI (Net)                      162,112     139,005     122,614     138,586     136,944     139,003        1.5%
    Convention/Conf.             103,221      97,194      77,710      88,033      84,890      84,240       -0.8%
    Corp. Meetings                30,293      21,769      22,635      26,204      28,306      27,310       -3.5%
    Incentive                     34,811      24,960      27,019      30,235      29,734      33,253       11.8%
----------------------------------------------------------------------------------------------------------------


                                                     Canada
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
     CANADA MMA (by Air)         2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                      14,920       8,978      10,429      16,195      11,296       9,512      -15.8%
  True Independent               254,534     250,577     287,466     346,733     371,840     389,146        4.7%
 
Leisure vs business
  Pleasure (Net)                 328,792     318,894     374,413     442,851     465,799     478,226        2.7%
  MCI (Net)                       16,637      17,109      15,934      20,208      18,745      15,113      -19.4%
    Convention/Conf.              12,462      12,329      11,712      15,087      13,098      10,725      -18.1%
    Corp. Meetings                 2,073       2,858       2,003       2,650       2,318       1,824      -21.3%
    Incentive                      2,484       2,790       2,830       3,232       4,009       3,019      -24.7%
----------------------------------------------------------------------------------------------------------------

North America: First Timers vs. Repeat Visitors

                                                    U.S. West
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
      U.S. WEST MMA (by Air)           2008       2009       2010       2011       2012      2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                           19.6       19.1       19.1       18.6       18.5       18.6         0.1
Repeaters (%)                            80.4       80.9       80.9       81.4       81.5       81.4        -0.1
----------------------------------------------------------------------------------------------------------------


                                                    U.S. East
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
      U.S. EAST MMA (by Air)           2008       2009       2010       2011       2012      2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                           43.9       43.0       42.3       41.6       41.8       42.1         0.3
Repeaters (%)                            56.1       57.0       57.7       58.4       58.2       57.9        -0.3
----------------------------------------------------------------------------------------------------------------


                                                     Canada
----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
        CANADA MMA (by Air)            2008       2009       2010       2011       2012      2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                           38.7       37.5       36.9       36.8       35.6       36.3         0.7
Repeaters (%)                            61.3       62.5       63.1       63.2       64.4       63.7        -0.7
----------------------------------------------------------------------------------------------------------------

Cost per Arrival/Return on Investment/Tax Revenue

                                                    U.S. West
----------------------------------------------------------------------------------------------------------------
                     U.S. WEST MMA (by Air)                          2010        2011        2012        2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                                             18.775      19.758      15.115      13.293
State tax revenue generated* ($ Millions)                              426.4       451.4       505.5       520.0
Return on Investment (Tax Revenue)                                     22.71       22.84       33.45       39.12
Cost Per Arrival                                                        6.42        6.60        4.75        4.13
----------------------------------------------------------------------------------------------------------------


                                                    U.S. East
----------------------------------------------------------------------------------------------------------------
                     U.S. EAST MMA (by Air)                          2010        2011        2012        2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                                              12.10       13.48       15.09       15.05
State tax revenue generated* ($ Millions)                              313.4       338.6       374.2       388.6
Return on Investment                                                   25.90       25.12       24.80       25.82
Cost Per Arrival                                                        7.51        8.21        8.88        8.86
----------------------------------------------------------------------------------------------------------------


                                                     Canada
----------------------------------------------------------------------------------------------------------------
                       CANADA MMA (by Air)                           2010        2011        2012        2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                                               1.10        1.09        1.57        1.42
State tax revenue generated* ($ Millions)                               81.2        98.7       111.4       113.8
Return on Investment                                                   74.06       90.31       71.02       80.45
Cost Per Arrival                                                        2.71        2.29        3.14        2.78
----------------------------------------------------------------------------------------------------------------
*State government tax revenue generated (direct, indirect, and induced)

                            Japan Fact Sheet
Japan Overview
    Japan is Hawai`i's largest international market and plans are 
underway to build on our momentum. In 2014, the HTA set targets aimed 
at reaching two million annual visitor arrivals by 2016. These 
increases were based on planned aircraft upgrades, new carriers 
entering the market, and route expansion. HTJ continues to display 
increased collaboration with both travels partners in Japan and 
Hawai`i, thus enabling the Hawaiian Islands to remain well positioned 
as a preferred vacation destination for the Japanese traveler.
2013 Quick Facts

Visitor Expenditures:                                                                          $2,527.1 million
Primary Purpose of Stay:                                                  Pleasure (1,266,324) vs. MCI (87,432)
Average Length of Stay:                                                                               6.02 days
First Time Visitors:                                                                                      40.3%
Repeat Visitors:                                                                                          59.7%
Average Number of Trips:                                                                                   3.93
 


----------------------------------------------------------------------------------------------------------------
                                                                             % Change                  % Change
        JAPAN MMA (by Air)              2011         2012         2013      2012-2013   2014 Target   2013-2014
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)      2,164.0      2,734.9      2,527.1        -7.6%      2,742.3         8.5%
Visitor Days                          7,484,700    8,819,493    9,014,563         2.2%    9,590,400         6.4%
Arrivals                              1,241,805    1,465,654    1,523,302         3.9%    1,620,000         6.3%
Per Person Per Day Spending* ($)          289.1        310.1        280.3        -9.6%        285.9         2.0%
Per Person Per Trip Spending* ($)       1,742.6      1,866.0      1,659.0       -11.1%      1,692.8         2.0%
Length of Stay (days)                      6.03         6.02         5.92        -1.7%         5.92         0.0%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending

Contact Information
Hawai`i Tourism Authority:

Miki Wakai, Brand Manager
[email protected]

Hawai`i Tourism Japan:

Eric Takahata, Managing Director
[email protected]
Market Summary
   Arrivals from Japan rose 3.9 percent to 1,523,302 visitors 
        in 2013.

   81 percent of total visitors stayed only on O`ahu, 2 percent 
        visited Kaua`i, 5.5 percent visited Maui county and 13.6 
        percent visited Hawai`i island. Total of neighbor island visits 
        increased by 6.5 percent, compared to 2012.

   83 percent of all passengers visited Hawaii for pleasure and 
        5.7 percent visited Hawaii for MCI.

   74 percent traveled on a package tour, which is 5.3 percent 
        higher compared to 2013.

   23 percent of the total visitors were Net True Independent 
        traveler, which is similar to 2013.

   40.3 percent of Japanese visitors were first timers, 1.6 
        percent lower than 2012.

   59.7 percent of the visitors were repeaters and the average 
        number of trips to the islands was 3.93 times.

   88 percent of visitors stayed in a hotel, 8.4 percent stayed 
        in Condo and 3.4 percent stayed in a timeshare.

   There were 2,027,820 air seats from Japan in 2013, an 11.3 
        percent increase from 2012.

   Average growth of the outbound travel from Japan is 4.2 
        percent for the last 10 years.

   JAL provides 102 less seats daily from 4/1 to 9/30 due to 
        aircraft change.

   China Airline provides 82 less seats daily from 5/7 to 6/29.

   Korean Airline provides 89 more seats daily in 2014.

   Hawaiian Fukuoka--Honolulu route stops its service on 6/1.
Market Conditions
   In an effort to spur the Japanese economy, Prime Minister 
        Abe is adjusting the country's financial plans through 
        ``Abenomics.'' The Japanese government approved a record 
        spending budget for Fiscal Year 2014 to 2015, amounting to $920 
        billion USD (95.9 trillion yen) aimed at lowering their public 
        debt and further growing the economy.

   Consumption tax will increase from 5 percent to 8 percent in 
        April 2014.

   JPY is trading at just above 100 yen to a dollar.

   GDP growth for Japan in 2013 was 2.6 percent.

   2013 Unemployment rate in Japan remained steady at 4.0 
        percent.

   Private consumption has been on the rise with increases in 
        consumer confidence. These effects show that consumers are 
        willing to spend, but with the devaluation of the yen and tax 
        increase, Hawai`i will become a more expensive destination for 
        Japanese visitors.

                                                              Visitor Statistics 2008-2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                   Change
         JAPAN MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target     2013p
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)       1,944.5      1,826.3      1,899.6      2,164.0      2,734.9      2,527.1        -7.6%      2,742.3         8.5%
Visitor Days                           6,744,053    6,806,138    7,276,211    7,484,700    8,819,493    9,014,563         2.2%    9,590,400         6.4%
Arrivals                               1,175,199    1,168,080    1,239,307    1,241,805    1,465,654    1,523,302         3.9%    1,620,000         6.3%
Per Person Per Day Spending* ($)           288.3        268.3        261.1        289.1        310.1        280.3        -9.6%        285.9         2.0%
Per Person Per Trip Spending* ($)        1,654.6      1,563.5      1,532.8      1,742.6      1,866.0      1,659.0       -11.1%      1,692.8         2.0%
Length of Stay (days)                       5.74         5.83         5.87         6.03         6.02         5.92        -1.7%         5.92         0.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending


                                                              Japan: Distribution by Island
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                   Change
         JAPAN MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target     2013p
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                  1,127,441    1,132,226    1,185,368    1,193,378    1,409,721    1,462,073         3.7%    1,499,173         2.5%
Maui County                               67,266       57,103       62,061       63,683       69,719       81,141        16.4%
Kaua'i                                    26,166       20,892       21,356       23,571       27,907       29,407         5.4%       30,989         5.4%
Hawai'i Island                           174,701      164,745      187,236      165,250      203,009      198,456        -2.2%      246,806
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          CALENDAR YEAR                      1ST QUARTER                       2ND QUARTER                       3RD QUARTER                       4TH QUARTER
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Japan                                                            2,025,638   2,029,288    -0.2%      516,820     471,466     9.6%      509,223     481,906     5.7%      502,894     547,568    -8.2%      496,701     528,348    -6.0%
Fukuoka                                                            126,609     175,775   -28.0%       43,650      43,020     1.5%       44,135      43,515     1.4%       19,412      44,620   -56.5%       19,412      44,620   -56.5%
Nagoya                                                             221,715     192,787    15.0%       55,350      40,320    37.3%       55,965      40,826    37.1%       55,200      54,831     0.7%       55,200      56,810    -2.8%
Osaka                                                              361,884     348,878     3.7%       87,840      79,942     9.9%       88,816      81,900     8.4%       95,436      95,328     0.1%       89,792      91,708    -2.1%
Sapporo                                                             40,663      40,460     0.5%       10,101      10,140    -0.4%       10,101      10,118    -0.2%       10,101      10,101     0.0%       10,360      10,101     2.6%
Tokyo-HND                                                          328,877     328,008     0.3%       81,404      81,252     0.2%       81,627      80,236     1.7%       83,536      83,536     0.0%       82,310      82,984    -0.8%
Tokyo-NRT                                                          945,890     943,380     0.3%      238,475     216,792    10.0%      228,579     225,311     1.5%      239,209     259,152    -7.7%      239,627     242,125    -1.0%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Japan: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                        %Change
     JAPAN MMA (by Air)          2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                     457,113     397,244     408,361     333,929     396,031     403,773        2.0%
  True Independent               183,189     222,885     267,587     298,886     350,172     350,353        0.1%
 
Leisure vs business
  Pleasure (Net)               1,048,593   1,074,178   1,067,488   1,074,578   1,268,715   1,266,324       -0.2%
  MCI (Net)                       51,626      35,576      47,613      43,305      52,386      87,432       66.9%
    Convention/Conf.              10,179      14,803      17,634       9,593      18,173      10,813      -40.5%
    Corp. Meetings                 5,817       4,688       8,756       5,875       8,087       2,181      -73.0%
    Incentive                     36,937      16,529      21,954      29,173      27,068      75,517      179.0%
----------------------------------------------------------------------------------------------------------------

Japan: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                        percent
        JAPAN MMA (by Air)             2008       2009       2010       2011       2012      2013p      Change
                                                                                                      2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers ( percent)                    42.3       42.1       41.5       41.1       41.9       40.3        -1.6
Repeaters ( percent)                     57.7       57.9       58.5       58.9       58.1       59.7         1.6
----------------------------------------------------------------------------------------------------------------

Cost per Arrival/Return on Investment/Tax Revenue

----------------------------------------------------------------------------------------------------------------
              JAPAN MMA (by Air)                  2008       2009       2010       2011       2012       2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                           8.89      10.14       7.22       6.53       8.47        7.62
State tax revenue generated*                       173.1      185.6      207.0      235.8      298.0       275.3
($ Millions)
Return on Investment                               19.47      18.29      28.67      36.11      35.18       36.13
Cost Per Arrival                                    7.56       8.68       5.83       5.26       5.78        5.00
----------------------------------------------------------------------------------------------------------------
* State government tax revenue generated (direct, indirect, and induced)

                           Oceania Fact Sheet
Oceania Overview
    The HTA, through Hawai`i Tourism Oceania (HTO), targets visitors 
from the countries of Australia and New Zealand which have experienced 
steady growth in outbound travel to Hawai`i over recent years. Since 
2004, the HTA has contracted with the Walshe Group Pty Ltd, to provide 
marketing services in Oceania. In September 2011, the HTA announced 
that the Walshe Group has been selected for a new multi-year contract 
starting Jan. 1, 2012 with the first year valued at $1.1 million. HTO 
moved into 2013 at the same base funding level and in 2014 received 
$1.34 million, but with higher targets.
2013 Quick Facts

Visitor Expenditures:                                                                            $840.8 million
Primary Purpose of Stay:                                                     Pleasure (328,728) vs. MCI (7,912)
Average Length of Stay:                                                                               9.48 days
First Time Visitors:                                                                               54.1 percent
Repeat Visitors:                                                                                   45.9 percent
Average Number of Trips:                                                                                   2.12
 


----------------------------------------------------------------------------------------------------------------
                                                                              % Change      2014       % Change
    OCEANIA MMA (by Air)        2010        2011        2012        2013p    2012-2013p    Target    2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($          328.2       477.4       639.8       840.8       31.4%       952.1       13.2%
 Millions)
Visitor Days                  1,586,379   2,092,356   2,606,362   3,348,374       28.5%   3,717,350       11.0%
Arrivals                        161,060     209,976     273,039     353,065       29.3%     391,300       10.8%
Per Person Per Day                206.9       228.1       245.5       251.1        2.3%       256.1        2.0%
 Spending* ($)
Per Person Per Trip             2,037.9     2,273.4     2,343.4     2,381.4        1.6%     2,433.2        2.2%
 Spending* ($)
Length of Stay (days)              9.85        9.96        9.55        9.48       -0.7%        9.50        0.2%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending

Contact Information
Hawai`i Tourism Authority:

Mike Story, Tourism Brand Manager
[email protected]

Hawai`i Tourism Oceania:

Australia: Ashlee Galea, Country Manager
[email protected]

New Zealand: Darragh Walshe, Country Manager
[email protected]
Market Summary
   In 2013, Oceania KPI's continued to grow YOY (29.3 percent) 
        in total arrivals, daily spending was $251.1 per person; up 2.3 
        percent compared to last year. Visitor expenditures by Oceania 
        visitors reached $840.8 million. The increased arrivals can 
        partially be attributed to a strong Australia dollar and 
        additional airlift out of both Australia and New Zealand.

   Airlift grew in 2013 and continues in 2014, but less 
        aggressively. In 2013, the majority of the growth in air seats 
        is attributed to Hawaiian Airlines new service from Brisbane to 
        Honolulu, Auckland to Honolulu, Jetstar's restarting Melbourne 
        to Honolulu service and Air New Zealand increasing Auckland to 
        Honolulu service. New service from Jetstar out of the Brisbane 
        market is expected to start in December of 2014.

   An additional carrier which also supports the market is 
        Qantas.

   Hawaiian Airlines new routes and connectivity throughout the 
        State is contributing to greater neighbor island awareness in 
        Oceania. However with the increase in visitor arrivals Hawai`i 
        is hosting more first-time visitors and these visitors 
        generally travel only to O`ahu on their first trip.

   The increase in the price to travel to Hawai`i will affect 
        the growth of Oceania KPI's in 2014.
Market Conditions
   Record low interest rates are having a positive effect on 
        the economy. The rates have been cut to 2.5 percent. Reserve 
        Bank of Australia

   Australia's Reserve Bank expects economic growth at between 
        2.25 percent and 3.25 percent in 2014. Reserve Bank of 
        Australia

   The recent rebound in the Australian dollar, combined with 
        expectations of tight Federal and state government budgets and 
        slow wage growth, leaves the Reserve Bank expecting an 
        improvement in consumer and business confidence. Reserve Bank 
        of Australia

   Unemployment is anticipated to continue to increase 
        gradually for the next year or so as the economy grows at a 
        below-trend pace. Current unemployment rate is 5.7 percent. 
        Reserve Bank of Australia

   The sustained good value of the Australian dollar continues 
        to provide favorable conditions for Australian overseas travel 
        in the near term. Reflecting this, the outlook remains positive 
        with outbound departures forecast to increase YOY by 4.9 
        percent to 8.8 million in 2013-14. Tourism Australia

                                                              Visitor Statistics 2008-2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
        OCEANIA MMA (by Air)             2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)         290.4        256.2        328.2        477.4        639.8        840.8        31.4%        952.1        13.2%
Visitor Days                           1,343,771    1,262,591    1,586,379    2,092,356    2,606,362    3,348,374        28.5%    3,717,350        11.0%
Arrivals                                 155,480      136,717      161,060      209,976      273,039      353,065        29.3%      391,300        10.8%
Per Person Per Day Spending* ($)           216.1        202.9        206.9        228.1        245.5        251.1         2.3%        256.1         2.0%
Per Person Per Trip Spending* ($)        1,867.8      1,873.7      2,037.9      2,273.4      2,343.4      2,381.4         1.6%      2,433.2         2.2%
Length of Stay (days)                       8.64         9.24         9.85         9.96         9.55         9.48        -0.7%         9.50         0.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2014
                        OCEANIA MMA (by Air)                             2008        2009        2010        2011        2012        2013p      Target
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                                                    146,118     128,127     153,554     202,075     260,317     340,413     358,942
Maui                                                                      31,586      26,599      32,597      45,651      50,625      72,212      73,575
Moloka'i                                                                   3,022       1,380       2,542       3,184       3,742       4,652       5,469
Lana'i                                                                     2,907       1,528       2,167       3,508       4,240       5,513       6,261
Kaua'i                                                                    14,605      12,142      14,789      19,304      22,807      31,197      32,837
Hawai'i Island                                                            25,674      23,434      27,642      37,832      45,749      58,074      72,114
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          CALENDAR YEAR                      1ST QUARTER                       2ND QUARTER                       3RD QUARTER                       4TH QUARTER
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oceania                                                            420,668     416,863     0.9%       98,760      90,863     8.7%      105,602     109,798    -3.8%      110,331     108,835     1.4%      105,975     107,367    -1.3%
Auckland                                                            88,452      77,620    14.0%       20,766      11,244    84.7%       21,294      19,842     7.3%       24,864      23,938     3.9%       21,528      22,596    -4.7%
Brisbane                                                            50,764      47,727     6.4%       10,101      12,480   -19.1%       13,468      12,455     8.1%       13,727      11,655    17.8%       13,468      11,137    20.9%
Melbourne                                                           40,602      35,451    14.5%        9,696       8,181    18.5%       10,302       9,393     9.7%       11,817       8,484    39.3%        8,787       9,393    -6.5%
Sydney                                                             240,850     256,065    -5.9%       58,197      58,958    -1.3%       60,538      68,108   -11.1%       59,923      64,758    -7.5%       62,192      64,241    -3.2%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Oceania: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
    OCEANIA MMA (by Air)         2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                       5,906       5,291       7,178       8,411       5,840      10,046       72.0%
  True Independent                79,406      72,814      78,572     103,835     139,707     180,736       29.4%
 
Leisure vs business
  Pleasure (Net)                 139,521     122,454     145,009     192,351     256,340     328,728       28.2%
  MCI (Net)                        5,769       5,502       6,827       5,669       3,879       7,912      104.0%
    Convention/Conf.               4,385       4,995       6,192       3,936       3,202       6,414      100.3%
    Corp. Meetings                   333         331         338         455         197         535      171.6%
    Incentive                      1,222         241         537       1,360         534         996      86.5%%
----------------------------------------------------------------------------------------------------------------

Oceania: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
    OCEANIA MMA (by Air)         2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                      52.9        55.5        54.3        56.6        56.1        54.1       (1.9)
Repeaters (%)                       47.1        44.5        45.7        43.4        43.9        45.9         2.0
----------------------------------------------------------------------------------------------------------------

Cost per Arrival/Return on Investment/Tax Revenue

----------------------------------------------------------------------------------------------------------------
             OCEANIA MMA (by Air)                  2008       2009       2010       2011       2012      2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                            1.16       1.32       1.06       1.56       1.36       1.41
State tax revenue generated* ($ Millions)            25.8       26.0       35.8       52.0       69.7       91.6
Return on Investment                                22.32      19.66      33.74      33.34      51.26      64.97
Cost Per Arrival                                     7.45       9.68       6.58       7.43       4.98       3.99
----------------------------------------------------------------------------------------------------------------
* State government tax revenue generated (direct, indirect, and induced)

                            China Fact Sheet
China Overview
    The HTA, through Hawai`i Tourism China (HTC), implements targeted 
marketing programs to increase awareness and drive travel demand to 
Hawai`i. In January 2014, the HTA contracted the Travel Link Marketing 
(TLM) to provide marketing representation services in Mainland China. 
TLM was established in 2005 with offices in Beijing, Shanghai, 
Guangzhou and Chengdu. Together with TLM, the new HTC, HTA aims for 
accelerated growth compared to previous years with increased air seat 
capacity out of China.
2013 Quick Facts

Visitor Expenditures:                                                                            $328.6 million
Primary Purpose of Stay:                                                    Pleasure (115,640) vs. MCI (10,397)
Average Length of Stay:                                                                               6.24 days
First Time Visitors:                                                                                      85.2%
Repeat Visitors:                                                                                          14.8%
 


----------------------------------------------------------------------------------------------------------------
                                                                              % Change      2014       % Change
     China MMA (by Air)         2010        2011        2012        2013p    2012-2013p    Target    2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($          127.7       178.2       277.1       328.6       18.6%       452.1        37.6%
 Millions)
Visitor Days                    364,543     479,447     699,703     827,129       18.2%   1,135,607        37.3%
Arrivals                         61,455      81,738     116,866     132,634       13.5%     182,100        37.3%
Per Person Per Day                350.3       371.7       396.0       397.3        0.3%       398.1         0.2%
 Spending* ($)
Per Person Per Trip             2,077.9     2,180.1     2,370.9     2,477.5        4.5%     2,482.4         0.2%
 Spending* ($)
Length of Stay (days)              5.93        5.87        5.99        6.24        4.1%        6.24         0.0%
----------------------------------------------------------------------------------------------------------------

Contact Information
Hawai`i Tourism Authority: Jadie Goo
Tourism Brand Manager
[email protected]
Hawai`i Tourism China: Brenda He
General Manager
[email protected]
Market Summary
   2013 arrivals from China rose 13.5 percent over 2012 to 
        132,634 visitors. 2014 YTD (Jan-Feb) arrivals increased 4.8 
        percent over the same period of last year.

   In 2013, most (95 percent) visited O`ahu, 16.6 percent 
        visited Hawai`i Island, 15.3 percent went to Maui and 2.9 
        percent went to Kaua`i. Number of visitors to Kaua`i remains 
        the lowest, mainly due to a lack of Chinese speaking receptive 
        tour operators and tour guides on that island. 2014 YTD (Jan-
        Feb) data showed a 29.6 percent growth YOY in arrivals to the 
        neighbor islands.

   In 2013, Chinese visitors spent an average 6.2 days in the 
        islands, slightly longer (+4.2 percent) than the same period in 
        2012.

   Average daily spending by Chinese visitors in 2013 was 
        $397.3, the highest out of all visitors to Hawai`i. Shopping 
        was their number one expenditure, followed by lodging, food, 
        and entertainment.

   Majority of Chinese visitors to Hawai`i are first timers. In 
        2013, 85.2 percent visited Hawai`i for the first time and 51 
        percent came on group tours. As the market continues to develop 
        and mature, repeat visitations and FITs will increase 
        gradually.

   Airlift: In 2013, the total number of direct service air 
        seats from China was 42,903. In 2014, with an additional 
        connecting Beijing and Honolulu and additional frequencies out 
        of Shanghai, the total air seats jumped to 139,473, a 225 
        percent increase. Currently, China Eastern flies five weekly 
        flights between Shanghai and Honolulu. Air China flies three 
        times a week between Beijing and Honolulu. Hawaiian Airlines 
        will launch direct Beijing-Honolulu services in April 2014.
Market Conditions
   Slowdown in economic/GDP growth; relatively strong compared 
        to other economies

   Currency exchange rate in favor of Chinese visitors

   Growing middle class and experienced and affluent travelers

   Continued improvement in U.S. visa processing; the U.S. 
        Consulate in Wuhan will open its visa service to the public in 
        2015 processing 200,000 (est.) visa applications per year.

   Approximately 1.858 million Chinese visited the U.S. in 
        2013, a 26 percent increase from 2012. Total arrivals from 
        China in 2014 are expected to increase by 24 percent to 2.304 
        million according to the U.S. Department of Commerce.

   Brand USA predicted China will become one of the top tourist 
        source markets for the United States in 2018 when the number of 
        visiting Chinese hits 4.7 million. Chinese travelers spent 
        US$8.8 billion last year in America, making America the top 
        spending destination for Chinese tourists.

   New regulations and caps on Chinese government spending 
        continue to impact oversea travel by government and state owned 
        businesses.

   Since the new China tourism law took effect on October 1, 
        2013, prices of group tour packages have increased as the law 
        forbids the levying of extra costs during tours.

   Increased competition from other destinations

                                                              Visitor Statistics 2008-2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
         China MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)          93.3         83.8        127.7        178.2        277.1        328.6        18.6%        452.1        37.6%
Visitor Days                             287,945      293,538      364,543      479,447      699,703      827,129        18.2%    1,135,607        37.3%
Arrivals                                  54,235       41,924       61,455       81,738      116,866      132,634        13.5%      182,100        37.3%
Per Person Per Day Spending* ($)           324.0        285.6        350.3        371.7        396.0        397.3         0.3%        398.1         0.2%
Per Person Per Trip Spending* ($)        1,720.0      1,999.8      2,077.9      2,180.1      2,370.9      2,477.5         4.5%      2,482.4         0.2%
Length of Stay (days)                       5.31         7.00         5.93         5.87         5.99         6.24         4.1%         6.24         0.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
** Excludes supplemental business spending


                                                              China: Distribution by Island
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
         China MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                     49,778       38,734       58,057       76,063      109,729      125,829        14.7%      164,505        30.7%
Maui                                       7,601        4,802        6,683       10,564       15,343       20,297        32.3%       24,244        19.4%
Moloka'i                                   1,356          405          579          934        1,560        1,108       -29.0%        2,478       123.7%
Lana'i                                       862          358          464        1,090          641          770        20.1%        1,029        33.6%
Kaua'i                                     2,360        1,391        2,026        2,868        3,828        3,803        -0.7%        5,992        57.6%
Hawai'i Island                             8,328        6,191        8,655       12,115       17,929       21,983        22.6%       30,728        39.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  2014Q1      2013Q1      %Chge     2014Q2      2013Q2      %Chge     2014Q3      2013Q3      %Chge     2014Q4      2013Q4      %Chge     CY 2014     CY 2013     %Chge
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
China                                                               25,575      11,086   130.7%       35,811       9,905   261.5%       44,170      10,560   318.3%       33,917      11,352   198.8%      139,473      42,903   225.1%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

China: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
     China MMA (by Air)          2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                      37,790      25,644      37,807      48,339      68,613      67,402       -1.8%
  True Independent                 9,040       9,045      12,964      15,364      22,863      33,237       45.4%
 
Leisure vs business
  Pleasure (Net)                  35,395      30,734      48,812      61,592      99,916     115,640       15.7%
  MCI (Net)                        7,235       5,410       5,879      11,242       8,709      10,397       19.4%
    Convention/Conf.               2,307       2,518       2,808       4,558       3,064       4,003       30.6%
    Corp. Meetings                 1,998         910       1,142       3,798       1,223       2,223       81.8%
    Incentive                      2,962       2,038       2,073       3,379       4,458       4,675        4.9%
----------------------------------------------------------------------------------------------------------------

China: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
     China MMA (by Air)          2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                      83.7        83.9        83.8        83.9        86.3        85.2        -1.1
Repeaters (%)                       16.3        16.1        16.2        16.1        13.7        14.8         1.1
----------------------------------------------------------------------------------------------------------------

Tax Revenue

----------------------------------------------------------------------------------------------------------------
                    China MMA (by Air)                        2008     2009     2010     2011     2012    2013p
----------------------------------------------------------------------------------------------------------------
State tax revenue generated* ($ Millions)                       8.3      8.5     13.9     19.4     30.2     35.8
----------------------------------------------------------------------------------------------------------------
* State government tax revenue generated (direct, indirect, and induced)

                            Korea Fact Sheet
Korea Overview
    The HTA, through Hawai`i Tourism Korea (HTK), implements targeted 
marketing programs to increase awareness and drive travel demand to 
Hawai`i. From 2004 to 2011, the HTA has contracted the Aviareps 
Marketing Garden Ltd. to provide marketing services in Other Asia that 
covers Korea, China, Taiwan, Hong Kong, Philippines, and Singapore. In 
September 2011, the HTA announced that the Aviareps Marketing Garden 
Ltd. had been selected for another new two-year contract from January 
1, 2012 through December 31, 2013. Aviareps Marketing Garden Ltd. has 
been extended to provide marketing services in Korea only through 
December 31, 2014.
2013 Quick Facts

Visitor Expenditures: $314.6 million
Primary Purpose of Stay:                                                     Pleasure (156,481) vs. MCI (8,017)
Average Length of Stay:                                                                               7.03 days
First Time Visitors:                                                                                      82.2%
Repeat Visitors:                                                                                          17.8%
Avg. Number of Trips:                                                                                      1.49
 


----------------------------------------------------------------------------------------------------------------
                                                                              % Change      2014       % Change
           Korea MMA (by Air)               2011        2012        2013p    2012-2013p    Target    2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)            194.0       282.4       314.6       11.4%       350.3        11.3%
Visitor Days                                813,989   1,078,814   1,205,501       11.7%   1,335,494        10.8%
Arrivals                                    112,567     153,338     171,506       11.8%     190,000        10.8%
Per Person Per Day Spending* ($)              238.3       261.8       261.0       -0.3%       262.3         0.5%
Per Person Per Trip Spending* ($)           1,723.0     1,841.9     1,834.3       -0.4%     1,843.4         0.5%
Length of Stay (days)                          7.23        7.04        7.03       -0.2%        7.03         0.0%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending
T: Targets
p: Preliminary

Contact Information
Hawai`i Tourism Authority: Grace Lee, Tourism Brand Manager
[email protected]

Hawai`i Tourism Korea: Emily Kim, Marketing Director
[email protected]
Market Summary
   In 2013, Korean arrivals rose 11.8 percent year to date, as 
        compared to the same period in 2012, to 171,506 visitors. 
        However, this was a decrease of 10.5 percent below our targets 
        of 191,671 visitors for year-end 2013.

   In 2013, 82.2 percent were first time visitors similar to 
        85.3 percent a year ago.

   Most Korean visitors went to O`ahu (98 percent), while 25 
        percent went to Maui, 8.9 percent went to Hawai`i Island and 
        2.9 percent went to Kaua`i.

   One out of three Korean visitors (37.1 percent) were true 
        independent travelers.

   Hotels accommodated 92 percent of the Korean visitors, a few 
        stayed in condominium properties (5.3 percent), with friends or 
        relatives (3.0 percent) and in bed and breakfast properties 
        (0.7 percent).

   In 2013, there were 379,810 airseats from Seoul, which is 
        similar as compared to 2012, which had a total of 379,089 
        airseats. In 2014, there will be a projected decrease of 7.7 
        percent to 350,583 airseats. This is mainly due to Hawaiian 
        Airlines reducing their daily flight to 5 times a week.

   Hawai`i has gained huge attention in Korea as the leading 
        long haul destination for honeymoons.

     The number of Korean honeymooners accounted for 39.3 
            percent of total visitors from Korea in 2013.
Market Conditions
   Over 24 percent of Korea's entire population of 50 million 
        travels overseas each year. Total outbound travel in 2013 
        increased 8.1 percent over 2012 reaching 14.8 million, 
        surpassing the all-time record high of 13.7 million set in 
        2012.

   According to the Korea Tourism Organization, the number of 
        Korean outbound travelers in January 2014 was calculated at 
        1,468,903, 3 percent higher than the number of outbound 
        travelers in January 2013.

   Number of Korean visitors to Hawai`i is projected to 
        continually increase, anticipating strength among the family 
        and FIT segments.

   With rising interest in healthy lifestyles and a higher 
        quality of life--individual wellness and healthy lifestyle have 
        become popular themes; luxury travel products with well-being 
        themes, such as spas and golf holidays are becoming 
        increasingly popular among high-end consumers.

   Plans to affect origination point expansion from the Busan/
        Youngnam Region in 2014-2015.

   Emergence of LLC's offering attractive prices to other Asia 
        countries will be a challenge.

   Major purposes of travel: Pleasure (52 percent), Honeymoon 
        (39 percent), Business (4.6 percent), Other (4.4 percent).
Travel Trends
   May and September used to be the most popular months for 
        honeymoons; however it is now more distributed throughout the 
        year. According to the current survey conducted by Korea 
        Gallup, 16 percent of the participants said they got married in 
        December while only 4 percent answered September. Since wedding 
        day and honeymoon expenses are much higher during the 
        traditional wedding season, couples are getting married during 
        non-traditional times.

     October and November 2014 are leap months in Korea, 
            which are normally ``bad luck'' periods to get married. 
            There will be less honeymoons during this time frame.

   Traditionally, overseas travel are soft during the Winter 
        Olympics and World Cup seasons.

                                                              Visitor Statistics 2008-2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
         Korea MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)          79.4         78.7        145.8        194.0        282.4        314.6        11.4%        350.3        11.3%
Visitor Days                             348,244      405,762      654,025      813,989    1,078,814    1,205,501        11.7%    1,335,494        10.8%
Arrivals                                  38,110       51,353       81,758      112,567      153,338      171,506        11.8%      190,000        10.8%
Per Person Per Day Spending* ($)           227.9        194.0        222.9        238.3        261.8        261.0        -0.3%        262.3         0.5%
Per Person Per Trip Spending* ($)        2,082.1      1,532.6      1,783.1      1,723.0      1,841.9      1,834.3        -0.4%      1,843.4         0.5%
Length of Stay (days)                       9.14         7.90         8.00         7.23         7.04         7.03        -0.2%         7.03         0.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
*Excludes supplemental business spending
T: Targets
p: Preliminary


                                                              Korea: Distribution by Island
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               % Change
               Korea MMA (by Air)                     2008         2009         2010         2011         2012        2013p     2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                                  34,883       46,731       74,973      104,655      147,039      167,552      174,491         4.1%
Maui County                                            10,764       14,208       22,531       34,288       43,611       44,064       55,127        25.1%
Maui                                                   10,670       14,081       22,169       33,880       43,413       43,690       54,301        24.3%
Moloka'i                                                  169          461          506          484          363          779          456       -41.5%
Lana'i                                                    256          286          274          268          291          359          370         3.0%
Kaua'i                                                  1,331        1,971        1,844        3,268        2,503        5,010        3,102       -38.1%
Hawai'i Island                                          4,631        6,797        8,681       11,156       13,392       15,278       18,168        18.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          CALENDAR YEAR                      1ST QUARTER                       2ND QUARTER                       3RD QUARTER                       4TH QUARTER
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge      2014F       2013       %Chge
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Seoul                                                              350,583     379,810    -7.7%       85,989     102,001   -15.7%       83,169      92,510   -10.1%       89,057      92,761    -4.0%       92,368      92,538    -0.2%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
*As of March 31, 2014

Korea: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
     Korea MMA (by Air)         2008        2009        2010        2011        2012        2013p    2013p-2014T
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                      9,731      14,435      24,346      31,167      41,870      37,301       -10.9%
  True Independent               17,806      20,474      27,727      35,742      50,815      63,737        25.4%
 
Leisure vs business
  Pleasure (Net)                 28,381      40,011      70,625     100,791     137,317     156,481        14.0%
  MCI (Net)                       4,261       5,309       5,062       4,926       9,218       8,017        13.0%
    Convention/Conf.              3,308       3,828       2,863       3,081       4,726       4,189       -11.4%
    Corp. Meetings                  399         615         793         983         612       1,169        91.0%
    Incentive                       611         950       1,451         927       3,968       2,840       -28.4%
----------------------------------------------------------------------------------------------------------------

Korea: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
     Korea MMA (by Air)          2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                      67.7        76.6        81.9        83.9        85.3        82.2       -3.6%
Repeaters (%)                       32.3        23.4        18.1        16.1        14.7        17.8       21.1%
----------------------------------------------------------------------------------------------------------------

Tax Revenue

----------------------------------------------------------------------------------------------------------------
                    Korea MMA (by Air)                        2008     2009     2010     2011     2012    2013p
----------------------------------------------------------------------------------------------------------------
State tax revenue generated* ($ Millions)                       7.1      8.0     15.9     21.1     30.8     34.3
----------------------------------------------------------------------------------------------------------------
* State government tax revenue generated (direct, indirect, and induced)

                           Taiwan Fact Sheet
Taiwan Overview
    The HTA, through Hawai`i Tourism Taiwan (HTT), implements targeted 
marketing programs to increase awareness and drive travel demand to 
Hawai`i. In January 2014, the HTA contracted the JWI Marketing (JWI), 
the new HTT, to provide marketing representation services in Taiwan. 
JWI Marketing was established in 2009 and is a wholly owned subsidiary 
of the Lion Group.
    Taiwan provides growth opportunities for Hawai`i with the approval 
of VISA waiver and the startup of direct air services from China 
Airlines which enables Hawai`i to connect deeper into and cultivate 
more of Southeast Asian markets.
2013 Quick Facts

Visitor Expenditures:                                                                                       N/A
Primary Purpose of Stay:                                                      Pleasure (20,358) vs. MCI (3,047)
Average Length of Stay:                                                                               7.59 days
First Time Visitors:                                                                                      61.3%
Repeat Visitors:                                                                                          38.7%
Average Number of Trips:                                                                                   1.96
 


----------------------------------------------------------------------------------------------------------------
                                                                              % Change      2014       % Change
      TAIWAN (by Air)           2010        2011        2012        2013p    2012-2013p    Target    2013p-2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($             NA          NA          NA          NA          NA        95.0           NA
 Millions)
Visitor Days                    126,445      69,303      84,643     205,035      142.2%     395,200        92.7%
Arrivals                         15,625       8,186       8,769      27,013      208.1%      52,000        92.5%
Per Person Per Day                   NA          NA          NA          NA          NA       240.3           NA
 Spending* ($)
Per Person Per Trip                  NA          NA          NA          NA          NA      1826.9           NA
 Spending* ($)
Length of Stay (days)              8.09        8.47        9.65        7.59      -21.4%        7.60         0.1%
----------------------------------------------------------------------------------------------------------------

Contact Information

Hawai`i Tourism Authority: Jadie Goo, Tourism Brand Manager
[email protected]

Hawai`i Tourism Taiwan: Andrew Koh, Account Director
[email protected]
Market Summary
   2013 arrivals from Taiwan increased 142 percent compared to 
        2012 to 27,013 visitors. 2014 YTD (Jan-Feb) arrivals rose 211 
        percent over the same period of last year.

   In 2013, 92 percent visited O`ahu, 27.4 percent visited 
        Hawai`i Island, 27.4 percent went to Maui and 3.3 percent went 
        to Kaua`i. For the first two months of 2014, O`ahu received 
        6,071 visitors (+228 percent); Hawai`i Island received 1,029 
        visitors (+236 percent); Maui received 1,020 visitors (+374 
        percent); and Kaua`i received 371 visitors (+244 percent).

   In 2013, more than half of Taiwanese visitors to Hawai`i are 
        first-time visitors (61.3 percent) and 46.2 percent are true 
        independent travelers.

   The average length of stay in Hawai`i for Taiwanese visitors 
        in 2013 was 7.59 days. There was a slight increase for the 
        first two month of 2014 to 8.42 days.

   Airlift:

     On June 2, 2013, China Airlines started direct non-
            stop service, twice a week, between Taipei and Honolulu.

     China Airlines maintains its existing 7 weekly 
            Taipei--Tokyo--Honolulu service.

     Hawaiian Airlines will end its three weekly Taipei to 
            Honolulu flights in April 2014 after 9 months of serving 
            the Taiwan market.
Market Conditions
   Economic forecast in 2014 for Taiwan is generally positive 
        with GDP expected to rise to roughly 3 percent. The outbound 
        travel industry for Taiwan is expected to remain strong with 
        over 10 percent growth.

   In February 2014, Consumer Confidence Index (CCI) increased 
        by 7.69 points to 82.93 points, compared to the same period of 
        the previous year. Overall, the variables of CCI were 
        increasing, including Intention for Stock Investment, Domestic 
        Economic Performance, Household Economic Performance, 
        Employment Status and The Standard of Commodity Prices.

   Unemployment rate remains low

   U.S. VISA waiver continues to attract visitors to U.S.

   Reduction in air seat capacity to Hawai`i will impact the 
        market

   Competition from short-haul destinations offering attractive 
        and affordable deals

   According to the U.S. Department of Commerce, in 2013, 
        approximately 363,000 Taiwanese visited the U.S., a 25 percent 
        increase over 2012. In 2014 and 2015, a year over year growth 
        rate of 15 percent and 10 percent is expected from the Taiwan 
        market.
Visitor Statistics 2010-2014

----------------------------------------------------------------------------------------------------------------
                                                                                                        %Change
       TAIWAN (by Air)           2010        2011        2012        2013p     % Change      2014       2013p -
                                                                              2012-2013p    Target       2014T
----------------------------------------------------------------------------------------------------------------
Visitor expenditures ($               NA          NA          NA          NA          NA        95.0          NA
 Millions)
Visitor Days                     126,445      69,303      84,643     205,035      142.2%     395,200       92.7%
Arrivals                          15,625       8,186       8,769      27,013      208.1%      52,000       92.5%
Per Person Per Day Spending           NA          NA          NA          NA          NA       240.3          NA
 ($)
Per Person Per Trip Spending          NA          NA          NA          NA          NA      1826.9          NA
 ($)
Length of Stay (days)               8.09        8.47        9.65        7.59      -21.4%        7.60        0.1%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending

Taiwan: Distribution by Island

----------------------------------------------------------------------------------------------------------------
                                                                              % Change      2014       % Change
                  TAIWAN (by Air)                       2012        2013p    2012-2013p    Target    2013p-2014T
----------------------------------------------------------------------------------------------------------------
O'ahu                                                     7,852      24,821      216.1%      47,323        90.7%
Maui                                                      1,621       7,407      357.0%      11,360        53.4%
Moloka'i                                                     11          93      736.5%         357       284.8%
Lana'i                                                       89         624      599.1%         202       -67.6%
Kaua'i                                                      380         894      135.2%       1,285        43.7%
Hawai'i Island                                            1,699       7,391      335.1%       6,982        -5.5%
----------------------------------------------------------------------------------------------------------------


                                         Taiwan: Airlift (2014 vs. 2013)
----------------------------------------------------------------------------------------------------------------
                                                    2014Q1   2013Q1   % Chge   2014Q2   2013Q2   % Chge   2014Q3
----------------------------------------------------------------------------------------------------------------
Taiwan                                              19,448        0       NA    8,864    2,763   220.8%    7,982
----------------------------------------------------------------------------------------------------------------


                                   Taiwan: Airlift (2014 vs. 2013)--Continued
----------------------------------------------------------------------------------------------------------------
                                           2013Q3   % Chge   2014Q4   2013Q4   % Chge  CY 2014  CY 2013   % Chge
----------------------------------------------------------------------------------------------------------------
Taiwan                                     18,566   -57.0%    8,289   19,448   -57.4%   44,583   40,777     9.3%
----------------------------------------------------------------------------------------------------------------

Taiwan: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
                             TAIWAN (by Air)                                   2012        2013p      2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                                                                       980        5,450       456.0%
  True Independent                                                               4,904       12,489       154.7%
Leisure vs business
  Pleasure (Net)                                                                 6,608       20,358       208.1%
  MCI (Net)                                                                      1,266        3,047       140.6%
  Convention/Conf.                                                               1,038        1,273        22.6%
  Corp. Meetings                                                                   158          926       487.5%
  Incentive                                                                        107          871       713.8%
----------------------------------------------------------------------------------------------------------------

Taiwan: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
                             TAIWAN (by Air)                                   2012        2013p      2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                                                                    57.7         61.3          3.6
Repeaters ( percent)                                                              42.3         38.7         -3.6
----------------------------------------------------------------------------------------------------------------

                           Europe Fact Sheet
Europe Overview
    The HTA, through Hawai`i Tourism Europe (HTE), targets visitors 
from the countries of the United Kingdom and Germany, the two top 
source markets in the Europe Major Market Area (U.K., Germany, France, 
Italy and Switzerland). In 2013 and 2014, HTA also provided additional 
funds to support trainings in France and Scandinavia. Europeans 
continue to travel despite their economic situation, however, they are 
watching their budget and spending less. Year end 2013 visitor arrivals 
are up 9.4 percent compared to the same period last year, and per 
person per day spending is down 1.5 percent. The UK Pound and Euro 
continue to relatively stable against the dollar.
2013 Quick Facts

Visitor Expenditures:                                                                            $292.1 million
Primary Purpose of Stay:                                                     Pleasure (111,188) vs. MCI (6,489)
Average Length of Stay:                                                                              12.91 days
First Time Visitors:                                                                                      70.8%
Repeat Visitors:                                                                                          29.2%
 


----------------------------------------------------------------------------------------------------------------
                                                                             % Change      2014       % Change
    EUROPE MMA (by Air)        2010        2011        2012        2013p    2012-2013p    Target    2013p--2014T
----------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($         228.5       244.0       292.1       334.5       14.5%       358.3         7.1%
 Millions)
Visitor Days                 1,437,409   1,525,705   1,669,269   1,883,581       12.8%   1,978,020         5.0%
Arrivals                       112,765     119,825     129,252     141,408        9.4%     148,500         5.0%
Per Person Per Day               159.0       160.0       175.0       177.6        1.5%       181.2         2.0%
 Spending* ($)
Per Person Per Trip            2,026.2     2,036.7     2,259.7     2,365.7        4.7%     2,413.0         2.0%
 Spending* ($)
Length of Stay (days)            12.75       12.73       12.91       13.32        3.2%       13.32         0.0%
----------------------------------------------------------------------------------------------------------------
* Excludes supplemental business spending F: Final P: Preliminary

Contact Information
Hawai`i Tourism Authority: Caroline Anderson, Tourism Brand Manager
[email protected]
Hawai`i Tourism Europe:
Germany: Inga Dockendorf, Account Marketing and PR Manager
    [email protected]

UK: Namisha Prajapati, Account Manager
[email protected]
Market Summary
Overall
   European arrivals increased +9.4 percent in 2013 (exceeding 
        targets), with the countries of UK, Germany, France and 
        Switzerland showing positive growth with the exception of 
        Italy.

   Daily spending was also up 1.5 percent at $177.6, and thus 
        total visitor spending to increase 14.5 percent.

   Length of stay increased +3.2 percent to 13.3 days, which 
        brought about double-digit growth to total visitor days at 
        +12.8 percent.

   Majority (74 percent) visited O`ahu, followed by Maui (42 
        percent), Hawai`i Island (34 percent) and Kaua`i (22 percent) 
        in 2013.

   The first two months of 2014 show visitor arrivals up 7.5 
        percent over the same period last year.
Market Conditions
Outlook
   The U.S. Department of Commerce, ITA, Office of Travel & 
        Tourism Industries' forecasts the following growth for 2014 
        (against 2013): UK (+1 percent); Germany (+4 percent); France 
        (+5 percent); Italy (-1 percent); Switzerland (+2 percent). 
        Visitor volume from Europe is expected in to increase 2.4 
        percent in 2014, followed by similar and slowly increasing 
        growth over the next four years. The largest growth from Europe 
        will come from the U.K., France and Germany. While the growth 
        forecasts reflect low-growth rates, it is based on large 
        traveler volume bases. (as of November 2013, OTTI)

   IMF expects the UK economy to grow 2.4 percent this year--
        faster than any other major European economy--against its 
        previous forecast of 1.9 percent.

   Germans consider the domestic economy to be clearly on the 
        upturn at present. In the wake of this, income prospects 
        climbed to reach a 13-year high. Willingness to buy also 
        improved and surpassed its seven-year high of the previous 
        month. The considerable increase in the consumer climate is 
        further boosted by a recent slump in propensity to save. From 
        the consumers' point of view, the economic upswing in Germany 
        is gaining momentum.
Competitive Environment
   In the UK market, early indications are that Vietnam, Mexico 
        and Cuba are becoming three of the most requested long-haul 
        destinations for 2014. (Kuoni)
Travel Trends
   Hotels are becoming ever more important as the main holiday 
        element, demand is growing for smaller destinations and 
        technology is a must while on holiday--those are the three key 
        findings of a new TUI consumer survey. Long-haul destinations 
        are more popular than ever while demand is also growing for 
        smaller destinations such as Menorca, Kos and Dalaman. 
        Technology is the heart of the other three trends. Customers 
        want to combine online and offline, especially for bookings, 
        while they also want to be connected while on holiday.

   Demand for winter holidays was good with a 6.3 percent 
        bookings increase last month. Cumulative winter bookings are 
        now 3.8 percent ahead of the previous year. There is a massive 
        42 percent increase in April bookings, mostly due to this 
        year's late Easter, which more than compensates for the 13 
        percent drop in March bookings. However, Germans were also just 
        as interested in booking their summer holidays last month. 
        Sales of summer holidays grew by 5.9 percent, with bookings for 
        June and August soaring by 20 percent. Demand for May and July 
        was lower than last year, however. Cumulated bookings for 
        summer 2014 are now 7.5 percent higher than one year 
        previously.

   Brand USA has selected Thomas Cook Group for a multi-million 
        dollar co-operative marketing deal to promote the country as 
        the world's leading destination for European visitors. The 
        agreement is the biggest media and partnership deal Brand USA 
        has made with a travel retailer in Europe. The partnership, 
        which will initially last for three months from mid-January and 
        run simultaneously across the UK, Germany, Belgium and Holland, 
        will see Cook and Brand USA embark on a high-profile, multi-
        media campaign that fully utilizes all the company's consumer 
        and trade touch-points.

   TUI and Thomas Cook dominate the European tour operators 
        market, according to and fvw overview. Together, these two 
        leisure travel groups have a combined market share of more than 
        50 percent in the major source markets of the UK, Scandinavia, 
        Netherlands and Belgium, and more than 30 percent of the German 
        mark. Kuoni is Europe's third largest tour operator followed by 
        DER Touristik, Costa (a cruise firm), FTI and Alltours.
Airlift
   Asiana Air is now offering flights exclusive Germany to 
        Honolulu. Daily service, except Monday and Tuesday, Germans can 
        fly from Frankfurt via Seoul to Honolulu.

                                                              Visitor Statistics 2008-2013p
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
        EUROPE MMA (by Air)              2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
Visitor Expenditures* ($ Millions)         248.9        197.2        228.5        244.0        292.1        334.5        14.5%        358.3         7.1%
Visitor Days                           1,474,584    1,366,674    1,437,409    1,525,705    1,669,269    1,883,581        12.8%    1,978,020         5.0%
Arrivals                                 115,172      104,403      112,765      119,825      129,252      141,408         9.4%      148,500         5.0%
Per Person Per Day Spending* ($)           168.8        144.3        159.0        160.0        175.0        177.6         1.5%        181.2         2.0%
Per Person Per Trip Spending* ($)        2,161.5      1,888.7      2,026.2      2,036.7      2,259.7      2,365.7         4.7%      2,413.0         2.0%
Length of Stay (days)                      12.80        13.09        12.75        12.73        12.91        13.32         3.2%        13.32         0.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
*Excludes supplemental business spending


                                                             Europe: Distribution by Island
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     % Change                  % Change
                                         2008         2009         2010         2011         2012        2013p      2012-2013p  2014 Target  2013p-2014T
--------------------------------------------------------------------------------------------------------------------------------------------------------
O'ahu                                     82,877       76,412       81,352       86,432       89,337      104,677        17.2%       98,755        -5.7%
Maui County                               43,348       39,698       44,120       47,678       54,331       59,122         8.8%
Maui                                      42,128       39,012       43,253       46,955       53,556       57,685         7.7%       62,399         8.2%
Moloka'i                                   1,816        1,763        1,801        1,949        2,132        2,225         4.4%        2,499        12.3%
Lana'i                                     1,941        1,733        1,801        1,803        1,469        2,540        72.9%        1,739       -31.5%
Kaua'i                                    22,233       20,938       21,908       24,273       28,773       31,099         8.1%       33,210         6.8%
Hawai'i Island                            31,748       30,397       30,868       34,916       40,687       48,571        19.4%       51,417
Hilo                                      14,007       14,567       14,533       16,591       18,766       25,914        38.1%
Kona                                      25,584       24,263       24,631       28,679       33,299       36,788        10.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------

Europe: Group vs. FIT; Leisure vs. Business

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
   VISITOR ARRIVALS BY AIR       2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
Group vs FIT
  Group tour                       9,503       7,236       6,913       8,493       9,124       8,009      -12.2%
  True Independent                62,769      59,568      63,342      68,749      74,481      89,280       19.9%
 
Leisure vs business
  Pleasure (Net)                  97,676      89,807      97,522     103,072     111,188     121,856        9.6%
  MCI (Net)                        7,312       7,077       5,533       7,695       6,489       9,059       39.6%
    Convention/Conf.               4,765       5,507       4,045       5,185       4,148       6,018       45.1%
    Corp. Meetings                 1,310         773         700       1,159         952       1,034        8.6%
    Incentive                      1,537         966         962       1,557       1,573       2,318       47.4%
----------------------------------------------------------------------------------------------------------------

Europe: First Timers vs. Repeat Visitors

----------------------------------------------------------------------------------------------------------------
                                                                                                       % Change
                                 2008        2009        2010        2011        2012        2013p    2012-2013p
----------------------------------------------------------------------------------------------------------------
1st timers (%)                      70.4        70.4        71.2        69.9        70.8        71.6         0.8
Repeaters (%)                       29.6        29.6        28.8        30.1        29.2        28.4        -0.8
----------------------------------------------------------------------------------------------------------------

Cost per Arrival/Return on Investment/Tax Revenue

----------------------------------------------------------------------------------------------------------------
                                             2008        2009        2010        2011        2012        2013p
----------------------------------------------------------------------------------------------------------------
HTA Expenses ($ Millions)                      0.998       0.185       0.306       0.377       0.497       0.451
State tax revenue generated*                    22.2        20.0        24.9        26.6        31.8        36.4
($ Millions)
Return on Investment                           22.20      108.29       81.35       70.52       64.03       80.81
Cost Per Arrival                                8.67        1.77        2.71        3.15        3.85        3.19
----------------------------------------------------------------------------------------------------------------
* State government tax revenue generated (direct, indirect, and induced)




                                 ______
                                 
    Response to Written Questions Submitted by Hon. Brian Schatz to 
                               Roger Dow
    Question 1. U.S. Customs and Border Protection rolled out the Model 
Ports of Entry Program at America's top 20 gateway airports starting in 
2006 to encourage public-private collaboration to improve the U.S. 
entry process. How effective has the Model Ports of Entry Program been?
    Answer. The Model Ports Program was initially piloted at Houston's 
George Bush Intercontinental Airport (IAH) and Washington Dulles 
International Airport (IAD) and focused on improvements to three 
particular areas of the entry process: staffing, queue management, and 
signage. Working in collaboration with the private sector, entry 
improvements were made to provide a more welcoming experience to 
international travelers through the more descriptive signage and 
materials in various languages, the creation and implementation of 
Passenger Service Managers, and the development (in coordination with 
Disney) of a welcoming video for the queuing area. That being said, the 
private sector's expertise was not fully utilized during the pilot 
program or rollout to the top 20 airports.
    To the surprise of the travel industry, DHS declared the Model 
Ports program fully implemented at the following airports: Atlanta, 
Boston, Dallas/Ft. Worth, Dulles, Chicago, Detroit, Ft. Lauderdale, 
Honolulu, Houston, Las Vegas, Los Angeles, Miami, Newark, New York 
(JFK), Orlando, Philadelphia, Sanford (FL), San Juan, San Francisco, 
and Seattle. Although improvements were made, the travel industry feels 
that the program never lived up to its potential and that additional 
organized stakeholder engagement could have led to a more robust 
program.

    Question 1a. How could this program be better leveraged to improve 
the U.S. entry process?
    Answer. While there was some collaboration with private sector 
entities as part of the Model Ports program, adoption of a series of 
recommendations could have led to significant improvements in the 
customer experience for international visitors and returning U.S. 
citizens. Understanding CBP's limited resources, it is unreasonable to 
expect the elimination of all wait times during peak processing hours, 
however, improvements to queue management, customer service, and the 
physical inspection hall could significantly improve a passengers 
perception of the entry process. Additionally, leveraging the private 
sector expertise could allow CBP to make significant improvements while 
under tight budget constraints. The re-launching of the Loaned 
Executive program is the perfect vehicle for a renewed Model Ports of 
Entry effort to reexamine enhanced public/private sector collaboration. 
By working with industry stakeholders including--airports, theme parks, 
local destinations, convention and visitor bureaus, online travel 
companies, airlines, and other organizations--CBP could develop best 
practices for the customer experience that could be applied at our 
Nation's busiest international entry airports.

    Question 2. The U.S. Department of Homeland Security has taken 
steps to reduce wait times at U.S. ports of entry by expanding U.S. 
Customs and Border Protection's trusted traveler programs, primarily 
the Global Entry Program. What specific actions could the Federal 
Government take to further expand the program and increase enrollment 
to boost enrollment and expedite the entry process?
    Answer. U.S. Travel has been a strong advocate for the Global Entry 
program. The program has provided benefits to CBP, program enrollees, 
and the general traveling public by allowing CBP to focus their limited 
resources on the `unknown' travelers, while allowing the trusted 
individuals expedited entry upon arrival. That being said, the specific 
initiatives below could lead to a significant increase in Global Entry 
enrollees and additional efficiencies for CBP:

   Domestic:

     DHS and the Department of State should coordinate visa 
            renewals and Global Entry enrollment.

     DHS should revamp and simplify the online application 
            process for Global Entry, without sacrificing any security 
            protocols.

     CBP should consider waiving the Global Entry 
            application fee for children of Global Entry members.

     CBP should consider using retired CBP officers for 
            Global Entry interviews to ensure current officers are 
            utilized for frontline screening and security operations.

   International:

     CBP should aggressively pursue bilateral agreements 
            with foreign governments and transition current pilots into 
            full-fledged programs.

     DHS and the Department of State should coordinate visa 
            and Global Entry enrollment for the citizens of countries 
            that are currently have bilateral trusted traveler programs 
            but are not part of the visa waiver program.

    Question 3. As the United States continues to reduce visa wait 
times, it is important to consider how we compare to our biggest 
competitor countries in terms of how long the visa application process 
takes. The perception of a lengthy wait time for visas hurts the United 
States' competitiveness in the global travel marketplace. Could you 
please provide examples of how the United States compares to key 
competitors in terms of the visa application process?
    Answer. The United States' visa process can be more onerous than 
other countries. A report by the World Travel & Tourism Council found 
that in 2011, the United States required visas for 36 percent of 
tourist arrivals--more than double the G20 average of 17 percent. In 
fact, among the G20 countries, only Saudi Arabia and India had a higher 
percentage of foreign tourists who were required to have visas. The 
United States requires all Brazilians to have visas when entering the 
country, while European countries waive this requirement for tourists 
staying under 90 days. Likewise, the United States offers fewer 
consular services in emerging markets than its competitors. Whereas the 
United Kingdom has 12 consulates capable of processing visas in China, 
the United States only has six.

    Question 3a. What specific actions could the Federal Government 
take to further streamline the visa application process?
    Answer. The Federal Government can take several actions to improve 
the visa process. I urge Congress to pass the JOLT Act. This bill would 
streamline the application process by creating a videoconferencing 
program for visa interviews, expanding the Visa Waiver Program, 
creating an expedited visa service, and encouraging travelers apply for 
visas during periods of low demand. I also recommend that Congress take 
actions to extend the length of U.S. visas for Chinese nationals, which 
currently are only valid for one year. This is cumbersome to travelers, 
and it requires an inordinate amount of time and staff to process the 
current number of visa renewal applications.

    Question 4. Certain travel and tourism data is necessary for the 
Federal Government and the private sector to target the international 
markets with the greatest future growth potential to remain competitive 
in the global travel marketplace. The Travel Promotion Act (P.L. 111-
145) called for the U.S. Department of Commerce to expand and continue 
its research and development activities in connection with the 
promotion of international travel to the United States. Does the U.S. 
Department of Commerce collect the necessary data the industry 
requires?
    Answer. The Department of Commerce's National Travel and Tourism 
Office (NTTO) has been collecting statistical data about air passenger 
travelers from overseas, Canadian and Mexican markets from the Survey 
of International Air Travelers (SIAT) since 1983.
    In general, the content and information collected through the 
survey is valuable and provides the government and the U.S. travel 
community detailed information on the number of arrivals, visitors' 
length of stay, level of spending and activities during their stay.
    One of the major challenges for the program over the years has been 
a lack of funding, which has reduced the number of surveys collected 
and processed since costs for conducting the research have increased 
over time. Many state travel offices and city convention and visitor's 
bureaus no longer find the data from the In-Flight Survey to be 
reliable due to the small sample size. This is particularly true for 
small to medium-sized states.
    If the SIAT could reach a one-percent sample size, all States would 
be better able to determine what demographic is travelling into and out 
of their market and thus use the data to attract greater numbers of 
international visitors. These visitors on average spend $4,500 per trip 
to the U.S. Increased tourism at the state level will create more jobs 
and contribute significantly to individual state economies.
    The SIAT is a critical tool in our countries continued efforts to 
boost international travel. We firmly believe that funding for the SIAT 
is critical to fully realizing the benefits of private and public 
sector efforts to market the U.S. as a premier destination and drive 
international visitation that is vital to our Nation's economy. As a 
result, we support the Administration's request for an additional $1.5 
million for the program in Fiscal Year 2015.
                                 ______
                                 
     Response to Written Question Submitted by Hon. Bill Nelson to 
                               Roger Dow
    Question. In your testimony, you note the fact that visa issues and 
customs clearance experiences and wait times are one of the main 
deterrents for international visitors to the United States. I 
frequently hear about these concerns from a number of tourism companies 
in Florida--particularly about Customs and Border Protection (CBP) 
staffing and delays at the Miami airport. From your perspective, how 
much of an impediment are these factors for international visitors? In 
particular, I am interested in your experience in the Brazilian 
market--which is a major source of visitors to Florida.
    Answer. Entry delays at our international airports are alarmingly 
pervasive, including at Miami International (MIA). Because of the steep 
demand in Brazil to visit the United States, the fact that Miami is the 
key gateway for this traffic, and the steep growth in passenger volumes 
through Miami, there is no doubt that delays there discourage potential 
Brazilian visitors.
    Last September, a U.S. Travel report documented that over the 
preceding 12 months, more than 40,000 passengers waited over two hours 
to be processed at MIA. Surveys reflected in that report also showed 
that 43 percent of overseas travelers who visited the U.S. said they 
will recommend that others avoid a trip here because of the entry 
process. Among business travelers, 44 percent said that they will not 
visit the U.S. in the next five years because of the entry 
inefficiencies.
    This affects travel from many overseas nations, but the impact is 
particularly acute for the enormous volume of prospective visitors from 
Brazil, the third-largest overseas (excluding Canada and Mexico) 
inbound travel market. In 2013, the fourth consecutive record-breaking 
year, the volume of Brazilian visitors rose by 15 percent, accounting 
for three percent of last year's total visitor volume. One can only 
imagine how much faster the volume would increase without the U.S. 
entry problems.
    It is my understanding that the situation has been at least 
temporarily eased, although at significant local expense, by 
installation of Automated Passport Control kiosks and by pilot programs 
to cover CBP personnel overtime during peak periods. However, as the 
fastest-growing airport in the Nation with 30 percent increase in 
international passengers since 2007, these strides clearly have been 
hampered by the static number of CBP officers available to process 
entering visitors. As the bipartisan Miami area congressional 
delegation has articulated clearly on many occasions, it is difficult 
to exaggerate the impact on travel and trade.
    All concerned appreciate the congressional decision, in the 
recently-enacted omnibus appropriations package for Fiscal Year 2014, 
to fund 2000 new CBP officers; and DHS Secretary Johnson's commitment 
to fill these positions on an expedited basis. While we believe 
additional CBP personnel are still needed to solve the problem you 
raise, assigning a substantial amount of these initial new-hires is a 
good first step.
    In that context, I must stress our strong view that this must be 
accompanied by new metrics to make sure that actions such as hiring 
more CBP officers actually improve the traveler experience. For this 
reason, we call on CBP to adopt a goal to process 80 percent of all 
inbound travelers within 30 minutes and 100 percent of inbound 
travelers within 45 minutes.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Amy Klobuchar to 
                               Roger Dow
    Question. Many people underestimate what encouraging international 
tourists to visit the United States means for diplomacy--international 
visitors to the United States are 74 percent more likely to have a 
favorable view of America after they come and visit. Do you feel that 
as tourism is making a come-back in the United States after the 
economic downturn, that we are once again starting to gain the 
international diplomatic benefits of international visitation to the 
United States? In your opinion do you think that this type of informal 
diplomacy makes our country a more secure place?
    Answer. I certainly agree that, in addition to the economic 
benefits, inbound international travel yields significant public 
diplomacy dividends for the United States. Our best ambassadors are 
ordinary Americans, who convey our fundamental values through personal 
engagement with visitors. When they drive along our coastline, stop at 
our vineyards, camp at our national parks, go to a ballgame, or follow 
the Underground Railroad or Freedom Trail, they experience not just our 
attractions but the fabric of our communities.
    That's why today, more than ever, overseas travelers visit not only 
our gateway cities but also make extended tours of the American 
heartland. Increasingly, foreign tour operators are encouraging 
itineraries that may begin and end in large metropolitan areas but also 
wind through smaller and rural regions, to showcase more fully the 
genuine American spirit. More than any government policy, that kind of 
people-to-people hospitality breaks through cultural and political 
barriers, making a lifelong impression on visitors that they return 
home to report to others.
    There is no doubt this has decidedly positive public diplomacy 
implications. In 2007, the House Foreign Affairs Committee held a 
series of hearings on this subject, examining considerable survey 
research showing precisely what your question suggests: that nearly 
every foreign citizen who visits here returns home more favorable 
toward the United States, toward Americans and even about our foreign 
policies. And we can assume that these visitors include many of 
tomorrow's leaders in each of these nations--individuals who may then 
come back to the U.S. in a work capacity with a much more nuanced 
understanding for the American psyche, benefitting all concerned. As 
the volume of international visitors rises, these benefits will grow as 
well.
                                 ______
                                 
    Response to Written Questions Submitted by Hon. Bill Nelson to 
                        Christopher L. Thompson
    Question 1. Mr. Thompson, I know Brand USA is currently conducting 
advertising and outreach in Brazil. What are your thoughts on how 
problems visitors experience with visas and wait times at customs 
impact travel to the U.S. from Brazil?
    Answer. Brand USA's mission is to market the United States as the 
premier travel destination for international travelers. In Brazil, we 
have engaged the Brazilian market in three ways. First by targeting the 
consumer audience by running a consumer based advertising campaign. 
Second by engaging the travel trade having participated in travel and 
trade shows in Brazil in 2013 and 2014. And finally through co-
operative partnerships with our partners to market the many 
destinations in the United States. Brazil has shown tremendous growth 
and opportunity and Brand USA is actively engaged in the Brazilian 
market to ensure the U.S. remains a top travel destination for 
Brazilian tourists.
    According to the recent ITB World Travel Trends Report, Brazilians 
are driving the outbound travel growth in South America in large part 
due to their love of short shopping trips, but this trend is shifting 
as well. Middle-income consumers that may have traveled for the first 
time five or six years ago are beginning to explore new places and 
types of trips, especially in Europe. The challenge in the United 
States is to better expose Brazilians to the diversity of opportunities 
available here.
    Entry into the Visa Waiver Program has proven to grow visitation 
from accepted countries. Being able to compete on a level playing field 
with Europe and other destinations would help our efforts. We will 
continue to market the United States under any conditions and are 
confident that number of Brazilians coming to the United States will 
continue to grow.

    Question 2. Over the past few years, Brand USA has expanded its 
outreach to a number of countries. However, the only South American 
country currently included is Brazil. In the future, do you contemplate 
expanding outreach to other South American countries?
    Answer. In South America, we actually have some form of marketing 
activity in Argentina, Brazil, Chile, Columbia, and Uraguay.
    With the establishment of our international representation office 
in Brazil in early 2014, we have been able to roll out consumer 
marketing through our co-operative marketing programs and public 
relations, as well as reach consumers through our outreach with the 
travel trade. Latin America is a key focus for Brand USA, and we intend 
to continue our expansion in those markets--particularly in Chile, 
which has recently been admitted into the Visa Waiver Program.
    Brand USA has also talked to several airlines within South America 
on developing new routes to the United States.
    We also have efforts throughout Mexico and Central America. In 
Mexico, we have a full consumer campaign and have participated in 
several trade shows and have conducted public relations efforts in 
Costa Rica, Dominican Republic and Guatemala.
                                 ______
                                 
   Response to Written Questions Submitted by Hon. Amy Klobuchar to 
                        Christopher L. Thompson
    Question 1. Brand USA was created in 2010 and has now been 
operational for three years. As a new type of public-private 
partnership, Brand USA has had to pave its way to success through 
cooperation and partnerships across the industry. A recent study by 
Oxford Economics concluded that Brand USA has a return on investment 
rate of 47 to 1. That means that for every $1 spent on travel promotion 
the United States gets $47 worth of economic benefits. That is a 
testament to Brand USA's efficiency . . . we're still spending less 
than many of our global competitors but we're getting more bang for our 
buck. Can you explain the reasoning behind this return on investment 
rate and why it is such a positive story for the U.S. economy?
    Answer. The Oxford Economics study utilized an econometric model, 
validated with both consumer post-ad campaign studies and competitive 
destination market share trends, to calculate the incremental impact of 
Brand USA's marketing activities. In addition to effective general 
marketing practices, there are a couple of reasons why Brand USA has 
been able to achieve such a high ROI percentage:

   Cooperative partner marketing (which represents a majority 
        of Brand USA's marketing) allows us to pool funds to boost 
        advertising reach, and reduce cost

   In-kind contributions often further reduce marketing cost 
        (e.g., sourcing images) or enhance consumer reach (e.g., 
        placements in magazines)

    The additional international visitors attracted by Brand USA 
marketing generated $3.4 billion for U.S. companies and supported over 
53,000 jobs--and without a single dollar collected from U.S. taxpayers. 
In addition, nearly $1 billion was collected in state, local and 
Federal taxes.
    It's also important to note that when the Travel Promotion Act was 
being considered back in 2009, the projected return on investment of 
Brand USA's activities once fully operational was a 20 to 1 with 
support for 47,000 jobs. Clearly, Brand USA is exceeding that 
estimate--and that was accomplished from the organization's presence in 
eight markets. Today, Brand USA is fully deployed in 10 markets, has 
travel trade outreach in 20 markets, and has a marketing presence in 
more than 30 markets.

    Question 1a. Can you give us a preview of what is next for Brand 
USA?
    Answer. As Brand USA moves forward in achieving the goal of 
welcoming 100 million international visitors to the United States by 
2020, we will continue to develop new programs and platforms and expand 
our full-scale consumer marketing campaign into additional markets. 
Brand USA plans to focus its efforts in multiple ways--from working in 
partnership with the Federal Government in support of the National 
Travel and Tourism Strategy, to promoting the great outdoors, to 
implementing culinary and retail strategies, to developing the Nation's 
first comprehensive calendar of events and experiences, to expanding 
our fully integrated consumer campaign, to continuing to build out the 
Nation's largest international representation network, to promoting and 
celebrating the National Parks with the production of a giant screen 
film, to sales missions, roadshows and mega familiarization trips, and 
more. All of these efforts serve to promote the experiences available 
throughout the 50 states, the District of Columbia, and the five 
territories to, through, and beyond the gateways.
Great outdoors and National Parks
    Brand USA will market around the great outdoors and national parks. 
As part of that overall marketing strategy, in the fall of 2014, we 
will begin production on a film for giant screen theatres that 
celebrates National Parks and Federally Managed lands. We plan to 
release the film in mid-2015 to honor the centennial anniversary of the 
National Park Service.
    Giant screen theatres can be found in many of Brand USA's key 
target markets. There are over 800 giant screen theatres in over 57 
countries around the world and that number continues to grow. One 
market which this film can have significant impact is China, one of the 
United States' top 10 countries in both international visitation and 
spend, has the second largest market with over 75 giant screen theatres 
located throughout the country.
    In conjunction with the big screen film, we will launch a social 
media campaign highlighting the great outdoors and U.S. national parks 
to over 5 million fans across our social media channels.
Culinary Initiatives
    We are also launching our culinary initiative inviting the world to 
explore the country's rich culinary landscape. The Great American Food 
Stories provides 31 chief-inspired recipes and a variety of culinary 
stories for each of the six culinary regions of the United States. The 
31 chefs featured in the guide are drawn from the State Department's 
Diplomatic Culinary Partnership with the James Beard Foundation. The 
culinary initiative is a high-quality tool to promote U.S. Food and 
travel experiences around the globe, and will launch with an integrated 
digital platform.
Promoting Retail
    Shopping is the number one leisure activity for 88 percent of all 
overseas visitors. In 2014 and beyond, we will continue and expand upon 
our retail strategy with campaigns in Australia, Brazil, Canada, China, 
Japan, Korea and the United Kingdom.
Calendar of Events
    We will also launch a calendar of events across our consumer 
website. This platform will allow our partners and destinations around 
the country to showcase their festivals, sporting and cultural events 
to international travelers. This will be the first national calendar of 
events of its kind, created to inspire to international tourists to 
visit the United States.
Consumer Campaign
    The Brand USA consumer campaign will target specific markets and be 
timed to roll out in markets when our target markets enter the planning 
phase of their travel--with a focus on experiences that resonate most 
with travelers in each market. For example, Brand USA has recently 
launched targeted consumer campaigns, in Mexico and Brazil, 
highlighting the great skiing the country has to offer. The timing of 
this campaign was designed to target audiences as they are planning 
their winter trips. Noting the attention and demand generated has 
prompted Brand USA to extend this campaign. We will continue to develop 
new campaigns around the great skiing experiences the United States 
has.
    Later this year we will be launching a campaign in several markets 
around the great golf courses this country has to offer. The campaign 
will be active in several markets including Brazil, Canada, Mexico and 
feature golf courses across the country.

    Question 1b. Where are your making your biggest investments and are 
you continuing to enter new markets in the coming year?
    Answer. As the Nation's destination marketing organization, we 
currently have marketing initiatives in more than 30 markets that we 
believe have the highest potential for growth--a combination of 
emerging and established markets that currently generate more than 90 
percent of all inbound travel to the United States. The markets are 
Argentina, Australia, Austria, Belgium, Belize, Brazil, Canada, Chile, 
China, Costa Rica, El Salvador, France, Guatemala, Germany, Honduras, 
Hong Kong, India, Ireland, Italy, Japan, South Korea, Mexico, 
Netherlands, New Zealand, Nicaragua, Panama, Russia, Singapore, Spain, 
Sweden, Switzerland, Taiwan, United Arab Emirates and the United 
Kingdom.
    To date, we have fully deployed our marketing outreach efforts in 
10 markets with an effective combination of our consumer brand 
campaign, co-operative marketing programs and platforms, and travel 
trade outreach. Those markets are Australia, Brazil, Canada, China, 
Germany, Japan, South Korea, Mexico, New Zealand and the United 
Kingdom.
    Brand USA is currently analyzing which international source markets 
to expand and deploy our marketing outreach efforts. Our analysis will 
focus on identifying the markets, which have the greatest opportunity 
for growth in the near term. This analysis is done to ensure we are 
deploying our resources in the most efficient and effective way 
possible.

    Question 2. Brand USA has been able to form a number of industry 
partnerships but it has also been able to form many partnerships with 
local and regional visitors bureaus, such as Explore Minnesota in my 
state, that are benefiting from the leverage Brand USA gives them to 
market abroad more widely. Not all states have large marketing budgets 
so Brand USA is opening doors to new markets around the world. What 
services do you offer not only to state visitors bureaus but local or 
regional visitors bureaus who are looking to expand their marketing by 
partnering with Brand USA?
    Answer. Brand USA offers a variety of marketing-driven cooperative 
programs to inspire inbound visitor travel to the United States and 
drive tourism dollars to communities in all 50 states, the District of 
Columbia and the five territories. Our programs include consumer, co-
operative marketing and trade outreach opportunities that add and 
create value for our partners.
    We currently have over 100 programs that create over 200 
opportunities for our partners to grow their international presence and 
increase international visitation, all at a scale and cost that 
wouldn't be possible without Brand USA.
    Many local and regional visitor bureaus have participated in our 
programs. Some of the most popular include our Inspiration Guides, In-
Language Videos and Discover America Global Websites.
    The Inspiration Guides are Brand USA's official language-specific 
print and online guides created to inspire travel by displaying the 
richness and variety of the American experiences to international 
travelers. Stunning photography and compelling copy are the hallmarks 
that attract readers. Participating partners also have the opportunity 
to promote their destination through a featured photo essay. This year, 
more than 550,000 print copies will be produced in 10 languages for 18 
international audiences.
    Brand USA's In-Language Video program creates and distributes in-
language multimedia content to help U.S. destinations promote their 
experiences to international travelers. Video content is customized to 
the specific international audience's point of view and targeted to 
interest (Culture, Indulgence, Great Outdoors or Urban Excitement) and 
country (Australia, Brazil, Canada, China, France, Germany, Italy, 
Japan, Mexico and/or the United Kingdom). Participating destinations 
can distribute video content through their own marketing channels. 
Additionally, Brand USA will distribute the videos through its digital 
channels. With our partners, we have produced over 500 videos, 
featuring many large and small destinations including Bloomington, 
Minnesota; Myrtle Beach, South Carolina; Loudon County, Virginia; 
Bismarck, North Dakota and many more.
    Many of our partners have also enhanced their presence on our 
consumer website, DiscoverAmerica.com. DiscoverAmerica.com was designed 
to help inspire international visitors and travel influencers to choose 
U.S. travel destinations, travel providers and experiences. There are 
several options on DiscoverAmerica.com that help international 
travelers learn more about specific destinations, travel brands or 
organizations. These pages create another cost effective way for these 
entities to expose themselves to several markets while gaining 
international visibility through the consumer promotions, which lead 
travelers to our websites.
                                 ______
                                 
     Response to Written Questions Submitted by Hon. Roy Blunt to 
                        Christopher L. Thompson
    Question 1. The Travel Promotion Act authorizes Brand USA to 
receive in-kind contributions. Can you give examples of these in-kind 
contributions, and the value they provide?
    Answer. Brand USA receives valuable in-kind contributions from 
domestic and international partners that allow the organization to 
conduct promotional activities that it would not otherwise be able to 
do.
    For example, in May 2013, Brand USA organized the first ever 
``mega-familiarization tour'' (MegaFam) to the United States. MegaFams 
are marketing initiatives that are key to promoting destinations to, 
through, and beyond the gateways. Familiarization tours are a common 
practice in destination marketing in which a city or state recruits 
sellers of travel or travel journalists to tour the destination in 
order to sell and/or write about it when they return home. The Brand 
USA inaugural MegaFam expanded this to a larger scale that only the 
national DMO can accomplish. Brand USA brought the top 100 sellers of 
travel to the United States from the UK--in fact, the participants had 
to compete on volume of sale over the preceding fiscal quarter--and put 
them on seven different itineraries around the United States that 
highlighted well-known and off-the-beaten path experiences. All seven 
groups assembled in Miami at the end of the tour to present their 
respective itineraries to the other Megafam participants.
    The MegaFam was possible because of in-kind contributions to Brand 
USA from its partners. British Airways provided all the airline tickets 
to fly the participants to and from the United States. American 
Airlines provided airline tickets to Miami for the final send-off. All 
ground transportation and lodging was also contributed by a variety of 
partners on an in-kind basis. These valuable contributions not only 
allowed this groundbreaking campaign to take place--and to serve as a 
model for similar fam tours from other markets--but also increased the 
reach of the publicity associated with the trips.
    Building on this success and leveraging the in-kind model, this 
year Brand USA ran additional MegaFams from the UK, Australia and 
Germany. These MegaFams showcased several destinations across 25 
states. The results of the Megafams are impressive--during the three-
month competition phase alone, in this year's second Megafam from the 
UK, participating travel agents booked over 12,000 flights to and 
within the USA, up from 5,500 flights during the competition phase in 
2013. As a marketing initiative, MegaFams are key to promoting all of 
the experiences the United States has to offer, especially non-gateway 
destinations that agents normally would not visit.
    This example of an in-kind contribution is just one among many. 
Other forms of in-kind include contributed advertising space such as 
full-page ads and dedicated inserts in major newspapers like The 
Guardian, placement in major tour guides around the world, and free 
video and still images that Brand USA would otherwise have had to 
create from scratch. In-kind contributions of media augment Brand USA's 
marketing plans, which enables Brand USA to reallocate resources and 
spend its cash budget on promotional activities elsewhere.
    All submissions for Federal matching funds for in-kind 
contributions are evaluated by a vetted third-party valuator (if no 
invoice for sale of a comparable good or service exists) before being 
certified by an independent public accounting firm and meticulously 
reviewed and confirmed by the Department of Commerce.

    Question 2. The recent Government Accountability Office (GAO) 
programmatic review and report of Brand USA included three key 
recommendations. Can you explain in greater detail how you addressed 
these recommendations from GAO? What other findings were there in the 
report?
    Answer. The GAO report covers the period from March 2012 to July 
2013 and was a follow-up to the assessment finalized in March 2012 as 
required by the Travel Promotion Act. The title of the document is 
``Brand USA Needs Plans for Measuring Performance and Updated Policy on 
Private Sector Contributions.'' GAO reported that Brand USA 
successfully promotes international travel to rural and urban areas 
equally and to all 50 states, DC and the five territories. The report 
provides detailed descriptions of Brand USA's personnel and procurement 
policies, which are compliant with all requirements of the Travel 
Promotion Act. It also provided an in-depth explanation of the in-kind 
valuation methodologies and Federal matching funds oversight 
administered by the Department of Commerce with input from Brand USA.
    The report identifies three key recommendations: (1) to develop 
metrics plans that measure not only the effectiveness of the campaign, 
but its ultimate macro impact on travel to and spending in the United 
States; (2) to competitively select the firm that assists in media 
valuation for matching funds; and (3) to formalize procedures with the 
Department of Commerce to revise the matching funds policies if 
necessary.
    At the time of the GAO report we shared with the GAO both our 
existing metrics around advertising reach and consumer sentiment as 
well as our pathway toward measure impact on macroeconomic outcomes 
like actual international visitation and spend. Since the report was 
issued, we have released an Oxford Economics study that demonstrates 
Brand USA's incremental impact on actual visitation and spend. The 
study employs an econometric model that is validated by a consumer 
sentiment model and a market share model. The results showed that in 
FY13 Brand USA was responsible for 1.1 million incremental 
international visitors that spent $3.4 billion and led to total 
economic activity of $7.4 billion, support for over 53,000 new U.S. 
jobs and a 47:1 marketing ROI.
    As the GAO report points out, Brand USA's hiring and procurement 
policies are consistent with the Travel Promotion Act and other 
applicable standards. However, in one instance the policy was not 
followed in the selection of the media valuation firm, which is a 
third-party valuator of media that is given to Brand USA as an in-kind 
contribution. The reason the firm was selected without a competitive 
bid is that the task is unique and complex, and the firm was selected 
after extensive vetting and approval from the Departments of Commerce 
and Treasury, which included review and approval of methodology. 
However, Brand USA has since put that contract out to bid in accordance 
with the GAO recommendation.
    The GAO report found that the system of valuation, validation and 
extensive oversight that has been set up to process applications for 
Federal matching funds is quite robust and compliant with the Travel 
Promotion Act and all relevant standards. The recommendation is not 
about the in-kind policies themselves but about how those policies 
might be amended if changes are necessary in the future. The policies 
pertain to the Department of Commerce but are mutually developed to 
ensure they stay of stay abreast of new types of contributions and best 
practices, and the two sides have successfully amended the policies 
several times. In response to the GAO recommendation, Brand USA and the 
Department of Commerce have codified the process we use to amend those 
procedures whenever novel types of contributions arise that necessitate 
changes.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Amy Klobuchar to 
                             Mike McCartney
    Question. Brand USA has been able to form a number of industry 
partnerships but it has also been able to form many partnerships with 
local and regional visitors bureaus, such as Explore Minnesota in my 
state, that are benefiting from the leverage Brand USA gives them to 
market abroad more widely. Not all states have large marketing budgets 
so Brand USA is opening doors to new markets around the world. Can you 
expand on what your efforts were like before Brand USA and what your 
international promotion efforts are like now with Brand USA?
    Answer. The HTA has invested in the international markets for many 
years. Our approach was driven more through direct travel trade 
collaborative efforts that where focused on Japan, Oceania (Australia 
and New Zealand), Europe, Canada, Taiwan, China and Korea. Brand USA 
has enabled us to elevate our efforts in these countries as well as 
expand our efforts into Latin America and intended entries into Hong 
Kong and Southeast Asia in 2015.
    Several areas where we will grow our efforts will be in co-op 
advertising and on-line exposure through search engine websites and 
social media.
                                 ______
                                 
    Response to Written Question Submitted by Hon. Amy Klobuchar to 
                               Brad Dean
    Question. Brand USA has been able to form a number of industry 
partnerships but it has also been able to form many partnerships with 
local and regional visitors bureaus, such as Explore Minnesota in my 
state, that are benefiting from the leverage Brand USA gives them to 
market abroad more widely. Not all states have large marketing budgets 
so Brand USA is opening doors to new markets around the world. Can you 
expand on what your efforts were like before Brand USA and what your 
international promotion efforts are like now with Brand USA?
    Answer. International tourism is a tremendous growth opportunity 
for the United States tourism industry. The typical international 
traveler stays longer and spends more than the average domestic 
traveler. As you are well aware, our Nation missed out on the growth in 
international travel prior to the creation of Brand USA, resulting in 
what many experts have termed the ``Lost Decade of Tourism.''
    Prior to our partnership with Brand USA, our efforts were limited 
to seasonal promotional in Ontario, Canada and a very limited 
promotional effort in the United Kingdom and Germany. The Canadian 
promotion resulted in a seasonal influx of visitors from the Toronto 
area for approximately six weeks each year. Due to budget limitations 
and the inability to establish sufficient brand awareness, our efforts 
in Europe yielded very limited results.
    Through Brand USA, our message is amplified and our investments are 
more efficient. Brand USA provides us with the market intelligence and 
tools which enable us to be much more competitive in international 
marketing in the following ways:

  (1)  Through Brand USA, we can reach a much larger audience. Prior to 
        Brand USA, we had to be very selective on where we could 
        promote, today we are able to enter markets with our 
        destination message simply by working through the agency. 
        Essentially, Brand USA opens the door to new global markets and 
        our cost of entry is much more affordable, enabling us to 
        promote in more places.

  (2)  Brand USA enables us to leverage our resources through media 
        purchases and publicity strategies that we simply could not 
        achieve on our own. One example of how this benefits a local 
        tourism promoter is the relationships Brand USA has established 
        with large, multinational media companies and promotional 
        entities. We could not develop those relationships on our own. 
        As a result, our marketing dollars are stretched farther and 
        the return on our marketing investment is much higher.

  (3)  Brand USA is able to serve in a key part of three-way 
        partnerships with local/state promoters and airlines, which are 
        essential to our ability to significantly grow international 
        tourism. By partnering with Brand USA, we can bring additional 
        resources and expertise to the table, which gives airline 
        partners needed assurance that the establishing air service to 
        U.S. destinations will be successful.

  (4)  Brand USA provides insightful research and essential knowledge 
        and expertise that help us navigate the maze of necessities in 
        growing international tourism. Language translation is one 
        challenge, but understanding and adapting to the many cultural, 
        social, and generational nuances and practices in countries 
        throughout the world is not something we can easily attain on 
        our own. Through Brand USA, we become better marketers prepared 
        to compete on the global scale.

    Brand USA enables us to expand and enhance our international 
marketing efforts. In the past three years, we've seen double-digit 
growth in international tourism, outpacing our domestic growth by 
nearly three times. Brand USA has helped spur economic growth and job 
creation in our community, and we believe the best is yet to come.
                                 ______
                                 

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