    [Senate Hearing 117-791]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 117-791

                     LEGISLATIVE SOLUTIONS TO REVIVE TRAVEL
                          AND TOURISM AND CREATE JOBS

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

                                    HEARING

                                   before the

                        SUBCOMMITTEE ON TOURISM, TRADE,
                              AND EXPORT PROMOTION

                                     of the

                             COMMITTEE ON COMMERCE,
                          SCIENCE, AND TRANSPORTATION
                              UNITED STATES SENATE

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                               SEPTEMBER 21, 2021

                                   __________

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

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                    Available online: http://www.govinfo.gov

                                 _________

                     U.S. GOVERNMENT PUBLISHING OFFICE

    54-260 PDF               WASHINGTON : 2023

           SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 FIRST SESSION

                       MARIA CANTWELL, Washington, Chair
    AMY KLOBUCHAR, Minnesota             ROGER WICKER, Mississippi, Ranking
    RICHARD BLUMENTHAL, Connecticut      JOHN THUNE, South Dakota
    BRIAN SCHATZ, Hawaii                 ROY BLUNT, Missouri
    EDWARD MARKEY, Massachusetts         TED CRUZ, Texas
    GARY PETERS, Michigan                DEB FISCHER, Nebraska
    TAMMY BALDWIN, Wisconsin             JERRY MORAN, Kansas
    TAMMY DUCKWORTH, Illinois            DAN SULLIVAN, Alaska
    JON TESTER, Montana                  MARSHA BLACKBURN, Tennessee
    KYRSTEN SINEMA, Arizona              TODD YOUNG, Indiana
    JACKY ROSEN, Nevada                  MIKE LEE, Utah
    BEN RAY LUJAN, New Mexico            RON JOHNSON, Wisconsin
    JOHN HICKENLOOPER, Colorado          SHELLEY MOORE CAPITO, West
    RAPHAEL WARNOCK, Georgia                 Virginia
                                         RICK SCOTT, Florida
                                         CYNTHIA LUMMIS, Wyoming
                        David Strickland, Staff Director
                     Melissa Porter, Deputy Staff Director
           George Greenwell, Policy Coordinator and Security Manager
                     John Keast, Republican Staff Director
                Crystal Tully, Republican Deputy Staff Director
                          Steven Wall, General Counsel
                                     ------

              SUBCOMMITTEE ON TOURISM, TRADE, AND EXPORT PROMOTION

    JACKY ROSEN, Nevada, Chair           RICK SCOTT, Florida, Ranking
    AMY KLOBUCHAR, Minnesota             DAN SULLIVAN, Alaska
    TAMMY DUCKWORTH, Illinois            MARSHA BLACKBURN, Tennessee
    JON TESTER, Montana                  RON JOHNSON, Wisconsin
    KYRSTEN SINEMA, Arizona              SHELLEY MOORE CAPITO, West
    JOHN HICKENLOOPER, Colorado              Virginia
                                         CYNTHIA LUMMIS, Wyoming

                                C O N T E N T S

                                  ----------
                                                                       Page
    Hearing held on September 21, 2021...............................     1
    Statement of Senator Rosen.......................................     1
        Letter dated September 20, 2021 to Hon. Jacky Rosen and Hon.
          Rick Scott from Eben Peck, Executive Vice President,
          Advocacy American Society of Travel Advisors (ASTA)........    42
    Statement of Senator Scott.......................................     3
    Statement of Senator Wicker......................................     4
    Statement of Senator Klobuchar...................................    31
    Statement of Senator Blunt.......................................    33
    Statement of Senator Sinema......................................    36

                                   Witnesses

    Tori Emerson Barnes, Executive Vice President of Public Affairs
      and Policy, U.S. Travel Association............................     6
        Prepared statement...........................................     7
    Suzanne Neufang, CEO, Global Business Travel Association.........    11
        Prepared statement...........................................    13
    Christopher R. Bidwell, Senior Vice President of Security,
      Airports Council International--North America..................    15
        Prepared statement...........................................    16
    Chirag Shah, Senior Vice President of Federal Affairs, American
      Hotel and Lodging Association..................................    19
        Prepared statement...........................................    21

                                    Appendix

    Response to written question submitted to Tori Emerson Barnes by:
        Hon. Kyrsten Sinema..........................................    45
        Hon. Marsha Blackburn........................................    45
    Response to written question submitted to Suzanne Neufang by:
        Hon. Amy Klobuchar...........................................    46
        Hon. Marsha Blackburn........................................    47
    Response to written question submitted to Christopher R. Bidwell
      by:
        Hon. Amy Klobuchar...........................................    47
        Hon. Marsha Blackburn........................................    48
    Response to written question submitted to Chirag Shah by:
        Hon. Amy Klobuchar...........................................    49
        Hon. Marsha Blackburn........................................    50

       LEGISLATIVE SOLUTIONS TO REVIVE TRAVEL AND TOURISM AND CREATE JOBS

                                  ----------

                          TUESDAY, SEPTEMBER 21, 2021

                                   U.S. Senate,
               Subcommittee on Tourism, Trade, and Export Promotion,
            Committee on Commerce, Science, and Transportation,
                                                        Washington, DC.
        The Subcommittee met, pursuant to notice, at 3 p.m. in room
    SR-253, Russell Senate Office Building, Hon. Jacky Rosen,
    Chairwoman of the Subcommittee, presiding.
        Present: Senators Rosen [presiding], Klobuchar, Sinema,
    Scott, Wicker, and Blunt.

                OPENING STATEMENT OF HON. JACKY ROSEN,
                        U.S. SENATOR FROM NEVADA

        Senator Rosen. Good afternoon and welcome to the Tourism,
    Trade, and Export Promotions Subcommittee's our fifth hearing,
    fifth hearing on Reviving Travel and Tourism Economy, and our
    first Legislative Hearing.
        Over the past few months members of this subcommittee and
    of the Full Commerce Committee have been working together on a
    bipartisan package of travel and tourism bills, officially
    called ``The Omnibus Travel and Tourism Act'' or as we prefer
    to call it ``The Tour Bus.''
        This comprehensive legislation will support the recovery of
    the travel and tourism economy in the wake of the COVID-19
    pandemic and help us build a brighter future for businesses and
    workers in this key sector for every single state in our
    Nation.
        Since we held our first hearing on the state of travel and
    tourism industry in April of this year, there have been some
    positive trends. Just yesterday the Administration announced
    its intentions to begin lifting travel restrictions in November
    for fully vaccinated foreign travelers seeking to fly to the
    United States. This safe practical step will provide a much-
    needed boost to our travel and tourism economy, supporting
    businesses and workers as we look to turn the corner from this
    pandemic.
        And yesterday's news is just one more sign that the travel
    and tourism industry appears to be in the process of recovering
    but slowly.
        Harry Reid International Airport in Las Vegas saw just over
    four million visitors in July, only 8 percent below its July
    2019 numbers, and thankfully consumers are planning leisure
    travel again.
        Federal relief, like the Paycheck Protection Program, the
    Restaurant Revitalization Fund, and the Shuttered Venue
    Operators Grant Program, well, they've helped keep businesses
    afloat during this very trying period.
        Support for tourism-heavy economies throughout the Economic
    Development Administration grants has also helped make this
    recovery possible.
        Widespread availability of the COVID-19 vaccine, of course,
    has provided the greatest stimulus, improving public health and
    consumer confidence.
        However, the travel and tourism industry, vital to every
    state's economy and work forces, still needs significant help.
    Business travel revenue is not expected to return to 2019
    levels until at least 2024. There are nearly 500,000 fewer
    hotel jobs compared to the pre-pandemic hotel employment and
    overseas arrivals in July 2021 were nearly 78 percent below
    July 2019 levels. For numerous reasons, international travel
    remains virtually nonexistent and we look forward to the
    lifting of international travel bans.
        I'm happy to report, though, that help is on the way not
    only focused on pandemic recovery but also on the future growth
    of travel, tourism, and hospitality in years to come. We must
    help create and bring back good paying jobs and that depends on
    bringing more visitors to the U.S. and investing in the
    infrastructure that the travel and tourism industry desperately
    needs.
        Bipartisan bills packaged together and the Tour Bus package
    will create jobs and further support the recovery of the travel
    and tourism industry by, Number One, establishing permanent
    leadership in the Federal Government on travel policies and
    strengthening the Department of Commerce's role in coordinating
    Federal travel and tourism policies.
        Two, investing in Brand USA, the Nation's public/private
    partnership dedicated to increasing international visitation to
    the United States.
        Number Three, updating the Department of Transportation's
    National Travel and Tourism Infrastructure Strategic Plan to
    better leverage infrastructure investments to help the industry
    recover from the pandemic.
        Number Four, studying innovative ways to screen airport
    travelers for COVID-19 and establishing a temporary joint task
    force among the Department of Transportation, the Department of
    Homeland Security, and the Department of Health and Human
    Services to address the unique impact of COVID-19 on air
    travel, both during and after the pandemic.
        I'm proud of the work that the members of the subcommittee
    that we've done to build the Omnibus Travel and Tourism Act. I
    particularly want to thank Chair Cantwell for supporting this
    bipartisan effort and her team for contributing to our
    discussions, Ranking Member Wicker for his team's significant
    role in crafting the package and facilitating discussions, and
    Ranking Member Scott for his leadership on airport screening
    provisions, Senators Klobuchar, Sullivan, and Blunt for their
    major substantive contributions to the bill, and so many other
    members on this subcommittee and Full Committee that are
    leading or co-leading provisions in the draft Omnibus, Senators
    Markey, Schatz, Sinema, and Blumenthal.
        I also want to thank my colleague from Nevada, Senator
    Cortez Masto, for her team's contribution to the development of
    this legislative package and I look forward to continuing to
    partner with her to advance policy changes that grow Nevada's
    travel and tourism industry.
        I'm looking forward today from hearing from all of our
    witnesses about how we can improve our legislation before we
    bring it before the broader Commerce Committee for a vote and
    then to the Senate Floor.
        Testifying today on the bill, we have industry experts from
    the U.S. Travel Association, the Global Business Travel
    Association, the Airports Council International, North America,
    and the American Hotel and Lodging Association.
        It is my hope that today's hearing will demonstrate why we
    need to pass the Tour Bus package and provide a forum for an
    engaging discussion on how to further support travel and
    tourism businesses and their workers as the industry recovers.
        Thank you all again for being here and I look forward to
    hearing each of you share your experiences and expertise with
    us.
        I'll now turn it over to Ranking Member Scott for his
    opening statement and then introduce our witnesses.
        Senator Scott.

                     STATEMENT OF HON. RICK SCOTT,
                       U.S. SENATOR FROM FLORIDA

        Senator Scott. First, I want to thank Chair Rosen for
    hosting this hearing today. I also want to thank Chair Rosen
    for her team which is very dedicated to growing tourism not
    just in each of our states which is important to our economy
    but all across our country.
        I want to thank all of our witnesses for being with us and
    sharing their perspective.
        Travel and tourism are incredibly important to the American
    economy, every state, and that's on full display in my home
    state of Florida. Florida's home to some of the best travel
    destinations in the world, whether that be our beaches, our
    wildlife, our attractions, cruising and more.
        When I was Governor, we grew the number of annual tourists
    from 80 million tourists when I got started to the last year I
    was there 126 million tourists, creates a lot of jobs. It was a
    record number every year.
        These tourists support our small businesses. They fuel our
    job growth. They help increase our state's investments in the
    environment, transportation, public safety, and education, and
    I think it's true probably for Chair Rosen's home state and
    mine when people come down there as tourists, they often buy a
    home, they don't use it, and pay all of our taxes. It's a great
    deal.
        I know this pandemic has impacted each of us differently
    and we've had to adapt to a lot for our families, our
    businesses, and employees to stay safe. Unfortunately, the
    pandemic has hurt Florida's travel industry significantly. I
    think the same is true for especially the Las Vegas industry,
    much like I think the entire country.
        I've heard from a lot of businesses and employees in
    Florida that rely on tourism for their jobs and they're facing
    a lot of challenges in this recovery from the pandemic. I know
    everybody's working hard to get our businesses reopened and get
    these jobs back.
        Florida's open for business. I know the regulations the
    Biden Administration has proposed in the mandates related to
    COVID, international travel have created some uncertainty
    around the state of especially our international travel and our
    tourism industries, and we all have to continue to work to
    figure out how to do this until we get these tourists back.
        Our nation, as we all know, can't go back to shutdowns. We
    can't cripple our economy. We can't destroy our jobs again. All
    these things have impacted our family, each of our families,
    education, everything.
        I got my vaccine. I think probably everybody here did. Some
    people have probably even got three of them and so anybody, I
    encourage and I think we all would, anybody that feels
    comfortable getting the vaccine, I hope they get one. I've been
    talking to our hospital industry and very few of the
    individuals that have gotten really sick in our hospitals have
    had the vaccines. So I had COVID and got the vaccine and I hope
    other people do the same thing.
        So I'm very proud of the work that Chair Rosen has led on
    this subcommittee. I think it's very important to a lot of jobs
    and I look forward to continuing to work with the Chair in
    getting some things done through the Full Committee.
        I worked on a lot of bills with regard to travel. I just
    want to bring up a couple of them. The bipartisan Fly Safe K-9
    COVID Detention Act with Senator Sinema to direct TSA to
    conduct a feasibility study on the use of K-9 units which have
    been reportedly effective in detecting COVID and will provide
    an additional layer of passenger screening.
        I think we all have to figure out how to get our airports
    better at doing screening so we don't ever have this shutdown
    again because, I mean, the number of jobs lost for a period of
    time because of what happened with travel, either domestic or
    international, is devastating.
        We also, I think all of us are very focused on restoring
    Brand USA. It's a bipartisan bill with Senators Klobuchar,
    Blunt, and Chair Rosen. It will make existing funds available
    to Brand USA to promote international travel as we recover from
    this COVID.
        So I think everybody sitting here, we've all sponsored
    legislation that's going to help make sure we get this travel
    industry back.
        So I look forward to working with all of my colleagues to
    make sure we go back to record tourism again in each of our
    states because it creates a lot of jobs, good paying jobs, in
    every one of our 50 states.
        Thank you, Chair Rosen.
        Senator Rosen. Thank you, Senator Scott.
        I'm going to yield now to Senator Wicker, the Ranking
    Member of the Full Committee, for some opening remarks.

                    STATEMENT OF HON. ROGER WICKER,
                     U.S. SENATOR FROM MISSISSIPPI

        Senator Wicker. Thank you so much, Senator Rosen and
    Senator Scott, for holding this important hearing to examine
    legislative proposals to revive travel and tourism and create
    jobs.
        The new Tourism, Trade, and Export Promotion Subcommittee
    has been very active in this Congress and I'm encouraged by the
    bipartisan nature of its work and this is certainly a
    bipartisan issue we are talking about today.
        The travel and tourism industry is a vital pillar of the
    American economy. COVID-19 has decimated this industry perhaps
    more than any other sector. Nearly 40 percent of all U.S. jobs
    lost because of the pandemic were in leisure and hospitality
    employment.
        During the worst point of the crisis, unemployment in the
    travel and tourism sector reached over 50 percent, more than
    double the national unemployment rate at the height of the
    Great Depression.
        Congress has sought to provide much-needed relief to help
    this industry survive and recover, and we recognize that more
    support is needed.
        Over the past several months our staffs and the staffs of
    several other members have formed a working group to examine
    how various pieces of bipartisan legislation could be packaged
    together to support our economic recovery. Their work has led
    to the draft of the Omnibus Tourism Act, the Tour Bus. I hope
    that becomes a byword in this Congress.
        The discussion draft includes provisions to study the
    impacts of COVID-19 on the travel and tourism industry, elevate
    travel and tourism matters at the Department of Commerce,
    promote travel to the United States, and set visitation goals
    for international travelers.
        This draft legislation has the potential to promote the
    travel and tourism industry and accelerate its recovery.
        I hope our witnesses today will update the committee on the
    state of travel and tourism industry and share their views on
    the discussion draft. It might take years to restore travel and
    tourism to pre-pandemic levels but I hope not. I'm hopeful that
    our work on this draft legislation will lead to a bipartisan
    package that will help this sector heal faster and prosper once
    again.
        Thank you, Madam Chair.
        Senator Rosen. Thank you, Senator Wicker, appreciate you
    being here today and for your comments.
        So we have four of our witnesses. Some are visiting with us
    virtually and so the first witness that I'd like to introduce
    is U.S. Travel's Tori Emerson Barnes. We're going to welcome
    her back to the subcommittee.
        Ms. Barnes provided invaluable testimony at our inaugural
    subcommittee hearing back in April and I am thankful that she's
    joining us again today as we develop her recommendations in the
    legislative solutions.
        As the Executive Vice President of Public Affairs and
    Policy at U.S. Travel Association, Ms. Barnes leads the
    Government Relations, Policy Development, Communications,
    Marketing, and Research Teams for the Nation's leading advocacy
    organization for travel and tourism issues.
        Ms. Barnes, you are now recognized for your opening
    remarks.

     STATEMENT OF TORI EMERSON BARNES, EXECUTIVE VICE PRESIDENT OF
           PUBLIC AFFAIRS AND POLICY, U.S. TRAVEL ASSOCIATION

        Ms. Barnes. Chair Rosen, Ranking Member Scott, and the
    members of the Subcommittee, good afternoon.
        I'm Tori Emerson Barnes, Executive Vice President of Public
    Affairs and Policy for the U.S. Travel Association. We're the
    only association that represents all sectors of the travel
    industry. Thank you for inviting us to participate in this
    important hearing.
        While I always prefer to meet face-to-face, I'm thrilled to
    be testifying virtually from Chair Rosen's hometown of Las
    Vegas, Nevada, where the U.S. Travel Association is hosting its
    annual trade shown IPW. In fact, IPW is the perfect example of
    why today's hearing is so important.
        At IPW, international travel buyers from around the globe
    meet with American travel businesses and destinations to
    purchase bookings for future travel to the United States.
        In 2018, travel bookings purchased at IPW generated $29
    billion in international travel spending through the U.S. which
    supported 83,000 American jobs. This trade show demonstrates
    the substantial economic power of both business and
    international travel, two vital segments of the industry that
    are still struggling to recover.
        According to Tourism Economics, domestic business spending
    this year is projected to be just 57 percent of 2019 levels and
    the U.S. is projected to lose more than $200 billion in
    international travel spending this year.
        Economists project that it will take at least 4 years for
    these segments to be restored and we simply can't wait that
    long.
        Thankfully, with the right policies in place, as proposed
    by this committee, Congress can accelerate a safe return to
    travel and restore travel jobs.
        U.S. travel has identified three broad areas where Congress
    can act. First, provide continued relief for impacted travel
    businesses, second, enact stimulus measures to spur travel
    demand, and third, enact long-term investments and policy
    changes to build a stronger, more globally competitive travel
    industry.
        For continued economic relief, many small businesses and
    organizations are still struggling to stay afloat, particularly
    those that are heavily dependent on business and international
    travel or in regions where leisure travel has been slow to
    return.
        Congress should consider extending PPP or reform the
    Restaurant Revitalization Fund to provide grants to travel-
    related/travel-dependent small businesses and enact the Save
    Hotel Jobs Act.
        To accelerate the return of business travel meetings,
    conferences, and events, Congress should enact the bipartisan
    Hospitality and Commerce Jobs Recovery Act which would help
    support business meetings and event-related travel.
        These tax credits alone could generate $227 billion in
    incremental economic activity and help restore the 2.8 million
    hospitality jobs that remain lost to the pandemic.
        Congress can also enact stimulus measures to restore
    international travel quickly and safely. I would like to
    applaud the Biden Administration for its announcement that it
    plans to lift 212(f) entry restrictions in early November and
    replace them with a global vaccine and testing requirement for
    inbound international travelers, but with this announcement the
    hard work now begins to make the United States the top
    destination in the world once again. That's why Congress must
    quickly enact the Restoring Brand USA Act.
        I'd like to thank Senators Klobuchar and Blunt for
    introducing the Restoring Brand USA Act which provides one-time
    emergency funding of $250 million to support the organization's
    recovery.
        We strongly support the inclusion of this Act and the
    Omnibus Tourism Act of 2021 which provides another possible
    pathway toward enactment.
        Finally, Congress must support investments and policies
    that can make the travel industry stronger and more globally
    competitive than it was before the pandemic. Congress can
    accomplish this by enacting the Visit America Act which would
    elevate the Commerce Department's role in coordinating Federal
    travel policies and setting long-term national strategies,
    establishing more senior leadership at the Department of
    Transportation to coordinate travel policy across all modes of
    transportation, enacting the One Stop Security Pilot Program
    that would streamline the entry process without compromising
    security, and making investments in travel infrastructure to
    bring about a more modern, efficient, sustainable
    transportation network.
        Last, I'd like to thank the Committee for its critical role
    in shaping and advancing the bipartisan Infrastructure
    Investment and Jobs Act which will also be critical for the
    travel industry's recovery.
        From relief to stimulus to investments in the future,
    there's no shortage of policies that could help restore travel
    jobs and get Americans and our economy moving again.
        I'd like to thank the members of this subcommittee,
    including the Honorary Subcommittee Senator Blunt, for your
    work developing the Omnibus Tourism Act or Tour Bus of 2021,
    and we hope the bill will move through the committee soon so
    that we can ensure that these policies can be enacted this
    year.
        We are so grateful for your significant leadership for the
    travel industry and I look forward to working with you on these
    solutions and welcome any questions that you may have.
        [The prepared statement of Ms. Barnes follows:]

     Prepared Statement of Tori Emerson Barnes, Executive Vice President,
               Public Affairs and Policy, U.S. Travel Association
        Chair Rosen, Ranking Member Scott, Chair Cantwell, Ranking Member
    Wicker, and members of the subcommittee, good afternoon.
        I am Tori Emerson Barnes, executive vice president of public
    affairs and policy for the U.S. Travel Association. Thank you for
    inviting the travel industry to participate in this critically
    important hearing.
        While I always prefer to meet face-to-face, I am thrilled to be
    testifying virtually from Las Vegas, Nevada, where the U.S. Travel
    Association is hosting its annual tradeshow, IPW. In fact, IPW is the
    perfect example of why today's hearing is so important.
        IPW is the leading inbound travel trade show in the U.S., where
    international travel buyers and tour operators from around the globe
    come to purchase future travel bookings to the U.S. At IPW, American
    travel businesses and destinations showcase and sell the hospitality
    services and diverse cultural attractions that make the United States
    the best country to visit in the world.
        Travel bookings purchased at IPW produce substantial economic
    benefits--for both the host city, like Las Vegas, and the entire
    country. In 2018, international travel buyers at IPW purchased nearly
    $5.5 billion in direct bookings with U.S. suppliers and destinations.
    These bookings were estimated to have brought more than 11.6 million
    international visitors to the U.S. over a 3-year period, which
    generated an additional $29 billion in travel spending. The total
    economic impact of the 2018 IPW supported 83,000 American jobs.\1\
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        This trade show demonstrates travel's substantial economic power.
    It also highlights two vital segments of the industry that have been
    decimated by the pandemic and have yet to fully recover: Business and
    international travel.
    Business Travel Remains Immobile
        Prior to the pandemic, business travel--which includes professional
    meetings, events, and conferences like IPW--accounted for just 20
    percent of all trips within the U.S. Yet, business travel spending
    generated 40 to 60 percent of airline and hotel revenue.
        Once the pandemic hit, business travel dropped to historic lows. In
    2020, business travel spending fell by 69 percent. Spending on travel
    for large, in-person professional meetings and events declined by 76
    percent, for a total loss of $97 billion.\2\
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        Today, there is little hope for a near-term recovery in business
    travel spending without innovative Federal policy solutions. Research
    by Deloitte found that, by the end of June 2021, the vast majority of
    corporate travel budgets were still 75 percent or more below 2019
    levels.\3\ According to Tourism Economics, domestic business spending
    in 2021 is projected to be just 57 percent of 2019 levels and will not
    fully recover until 2024.
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    International Travel Restrictions are Crippling Recovery
        International travel to the U.S. also remains severely depressed,
    due largely to the continuation of section 212(f) entry restrictions
    and border closers for Canada, the United Kingdom (UK), the European
    Union (EU), and several other nations.
        In 2020, international travel spending in the U.S. declined by 79
    percent, leading to the loss of 1.1 million American jobs.\4\ For each
    week that travel restrictions on Canada, the EU, and the UK remain in
    place, the U.S. economy will lose another $1.5 billion in international
    visitor spending, which is enough to support 10,000 American jobs. If
    nothing is done to ease entry restrictions before the end of this year,
    economists project that the U.S. will lose a total of $262 billion by
    the end of 2021 and international visitation will not fully recover
    until at least 2024.\5\
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    International%20reopening%20
    fact%20sheet%20data_2021.pdf
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    Data and Scientific Studies Show Travel is Low Risk
        The good news is that we can reopen international travel and
    encourage the return of business travel without compromising public
    health and safety.
        Research from the Mayo Clinic shows that with right protections in
    place--such as pre-departure testing, proof of vaccination, and mask
    wearing--the risk of a person infected with COVID-19 boarding a flight
    from the UK to the U.S. is 1-in-10,000. The same research shows that
    the risk of an infected passenger transmitting the virus while flying
    is even lower, at 1 out of 1 million passengers. Additionally, the
    Aerospace and International Airline Medical Associations found that the
    risk of contracting COVID-19 during air travel is lower than
    contracting the virus while in an office building, classroom, grocery
    story or commuter train.
        Professional meetings and events have been shown to be equally low
    risk. According to analysis by the Ohio State University, professional
    meetings and events ``have not been super-spreader events.'' Modeling
    by the research firm Epistemix found that the risks of infection at
    events can be eight times less than within the local community where
    the event was held. The same analysis found that events have not been a
    major driver of case counts, largely because vaccination rates among
    participants are approximately 80 percent, which is much higher than
    the overall population.
    Legislative Solutions to Revive Travel and Tourism and Create Jobs
        Despite the overwhelming evidence that it's possible for an
    immediate and safe return of travel, we still have a long way to go on
    the road to recovery. The leisure and hospitality (L&H) industry added
    NO jobs in August, after six months of averaging 350,000 new jobs per
    month. Employment in the leisure and hospitality industry remains 10
    percent below pre-pandemic levels and 32 percent of all jobs lost in
    2020 have not been restored. Overall, economists predict that it will
    take at least four years for the industry to fully recover to 2019
    levels of employment and spending. That is far too long to wait.
        Congress and the Administration must implement the right strategies
    now to restart widespread travel. U.S. Travel has identified three
    broad areas where Congress can act:

      1.  Provide continued economic relief for impacted travel businesses.

      2.  Enact stimulus measures to spur travel demand and accelerate
            rehiring, including the Hospitality and Commerce Jobs Recovery
            Act (S. 477) and the Restoring Brand USA Act (S. 2424).

      3.  Make long-term investments to build a more modern and competitive
            travel industry, including investments in travel
            infrastructure, streamlining aviation security, and elevating
            Federal leadership in travel policymaking.
    Provide Continued Economic Relief for Small Travel Businesses
        Congress should provide continued economic relief to small travel
    business or organization that are struggling to stay afloat because of
    the pandemic-particularly hotels, tour operators, event organizers,
    travel planners, food service businesses, and in-person entertainment
    and amusement providers. As long as COVID-19 remains a threat to a full
    reopening, targeted relief will be needed to help travel businesses and
    organizations overcome unanticipated challenges related to the
    pandemic, meet basic expenses, and keep their workers employed.
    Economic relief measures should include:

      1.  Extending PPP, reforming the Restaurant Revitalization Fund, or
            enacting the SAVE Act (H.R. 2120) to provide grants to travel-
            dependent small businesses and organizations with continued
            revenue decline.

      2.  Enacting the Save Hotel Jobs Act (H.R. 3093 / S. 1519).
    Enact the Hospitality and Commerce Jobs Recovery Act (S. 477)
        Congress can accelerate recovery and rehiring by providing economic
    incentives for the return of conferences, conventions, and trade shows,
    which are a significant driver of business travel. Section 2 of the
    bipartisan Hospitality and Commerce Job Recovery Act (S. 477) provides:

      1.  A tax credit for meeting venues and others to offset the
            financial risks associated with organizing meetings and events
            during the pandemic; and

      2.  A tax credit for businesses and nonprofits to encourage them to
            start planning for attending professional meetings and events
            as conditions improve. Such events typically require around 6-9
            months of lead time with commitments from

        This meetings and events tax credit alone would generate $227
    billion in incremental economic activity, help restore the 2.8 million
    hospitality jobs that remain lost to the pandemic, and boost government
    tax revenue by $15.9 billion.
        That's why we're urging Senators to cosponsor S. 477 and push for
    the inclusion of the meetings and events tax credits in the next moving
    legislative vehicle.
    Provide Emergency Funding for Brand USA
        Congress can also enact stimulus measures to restore international
    travel quickly and safely. Investment in Brand USA would see major
    returns for American businesses and help bring back jobs reliant on
    international exports.
        As members of this committee know, Brand USA is a public-private
    partnership, established by the Travel Promotion Act, that promotes
    international travel to all regions of the U.S. It receives 50 percent
    of its funding from the collection of a fee that Visa Waiver Program
    visitors pay before coming to the U.S. and the other 50 percent through
    1-to-1 matching contributions from the private sector.
        Brand USA's funding was decimated by COVID-19 and international
    travel restrictions. ESTA fee collections are projected to be just $10
    million this year, down from an average of more than $110 million.
        Now more than ever, our economy needs Brand USA. The 212(f) travel
    bans, massive delays in visa issuance, and other travel restrictions
    have damaged the image of the U.S. as a destination for business travel
    and tourism. Brand USA will be essential for restoring our Nation's
    image, encouraging international visitors to return, and communicating
    any new public health and safety requirements for entering the United
    States.
        We are grateful for the leadership of Senator Klobuchar and Senator
    Blunt for introducing the Restoring Brand USA Act (S. 2424), which
    provides one-time emergency funding of $250 million. Best of all, the
    funding in the Act comes from a surplus of fees that were originally
    collected and intended to fund Brand USA.
        We'd like to thank Chair Cantwell, Ranking Member Wicker, Chair
    Rosen, and Ranking Member Scott for marking up S. 2424, and members of
    this committee for approving the bill with overwhelming bipartisan
    support. We also strongly support the inclusion of the Restoring Brand
    USA Act in the Omnibus Tourism Act of 2021.
    Elevate Federal Leadership in Travel Policymaking
        The Visit America Act, which was introduced by Senator Sullivan in
    the last session of Congress, would strengthen the Commerce
    Department's role in coordinating Federal travel policies, set
    consistent national goals to boost travel exports, and develop clear
    strategies to achieve them.
        The establishment of an Assistant Secretary for Travel and Tourism
    within the Department of Commerce, as prescribed in the Visit America
    Act, would help centralize decision making on a wide array of complex
    travel issues that must be urgently addressed, including how to
    streamline visa and visitor processes. We also commend the Act for
    exploring innovative ways to achieve ambitious international visitation
    goals, including by directing the Assistant Secretary to lead on
    promoting meetings, conferences, recreation, and other events to be
    hosted in the U.S.
        The U.S. Travel Association fully supports including the text of
    Visit America Act in the Omnibus Tourism Act of 2021.
        The Omnibus Tourism Act of 2021 also includes language directing
    the Secretary of Commerce to study the economic impacts of COVID-19 on
    America's travel industry, develop a recovery strategy, and set
    national visitation and spending goals for international travel. We
    urge the subcommittee to consider including language in the bill that
    directs the Secretary of Commerce to develop a national travel and
    tourism strategy, including setting visitation and spending goals, on a
    consistent basis of no less than every 10 years.
    Establish a One-Stop Security Pilot
        A longer-term proposal that we strongly support is the One-Stop
    Security program. This would authorize the Transportation Security
    Administration (TSA) to conduct a pilot program at ten airports in
    which a traveler and their carry-on baggage would not need to be re-
    screened upon arrival in the U.S. for their domestic connecting flight,
    if the last point of departure airport has an equivalent level of
    screening to the U.S. The One-Stop Security program would uphold the
    safety and security of the air travel system, while providing air
    travelers with much-needed efficiencies and a more seamless travel
    experience. We urge the subcommittee to consider including language in
    the Omnibus Tourism Act to enable the TSA to continue and expand this
    program if it proves successful.
    Improve America's travel infrastructure
        Lastly, we are urging Congress to prioritize legislation to improve
    America's travel infrastructure to facilitate domestic travel and to
    better prepare to welcome back visitors from around the world.
        Even before the public health crisis, cities and towns were growing
    further apart due to aging, insufficient infrastructure and congested
    roadways. By prioritizing infrastructure investments that enhance the
    economic contributions of travel and improve passenger mobility, the
    U.S. can emerge from the pandemic and rebuild the travel industry with
    stronger, more connected infrastructure systems than ever before.
        We want to thank this committee for its critical role in shaping
    and advancing the Infrastructure Investment and Jobs Act. This
    bipartisan package represents a substantial step forward in securing a
    more modern and connected future for the country. In addition to
    historic investments in U.S. airports, passenger rail, and other
    critical travel infrastructure, the legislation recognizes the
    essential role of travel in the U.S. economy. Notably, it establishes a
    new leadership role at the Department of Transportation responsible for
    coordinating travel infrastructure policy across all modes of
    transportation and developing strategies for reviving tourism in the
    wake of COVID-19. We support the inclusion of similar provisions in the
    Omnibus Tourism Act of 2021 to elevate leadership within DOT on travel
    and tourism issues.
        In the coming days, we will do our part to urge the House of
    Representatives to pass the Infrastructure Investment and Jobs Act.
    Closing
        Following nearly 20 months of rapid job losses, severe financial
    downturns, and major operational disruptions, travel industry workers
    and businesses are still not out of the woods. Many fear that it will
    take at least four years until employment and spending fully recover.
    Thankfully, with the right policies in place, Congress can
    significantly shorten this timeline.
        Thank you for inviting the broader travel industry to testify on
    the legislative solutions needed to support our industry during these
    unprecedented challenges. Thank you for your leadership to develop the
    Omnibus Tourism Act of 2021 and for your support of travel-related
    measures that are outside the committee's jurisdiction. We look forward
    to working with you on these solutions and I welcome any questions you
    might have.

        Senator Rosen. Well, thank you, Ms. Barnes, appreciate you
    being here.
        Now I'd like to introduce our next witness. Ms. Suzanne
    Neufang, CEO of the Global Business Travel Association, GBTA,
    the country's premier business travel and meetings trade
    organization.
        Ms. Neufang formally assumed her role as CEO earlier this
    year. Prior to leading GBTA, Ms. Neufang held several senior
    leadership roles at travel and technology companies. She's been
    an active member of GBTA since 2005 and led the Association of
    Corporate Travel Executives in various capacities between 2012
    and 2018.
        Ms. Neufang, thank you so much for being here virtually.
    You're now recognized for your opening remarks.

       STATEMENT OF SUZANNE NEUFANG, CEO, GLOBAL BUSINESS TRAVEL
                              ASSOCIATION

        Ms. Neufang. Chairwoman Rosen, Ranking Member Scott, and
    members of the Subcommittee, I'm Suzanne Neufang, CEO of the
    Global Business Travel Association or GBTA.
        Thank you for the opportunity to testify today regarding
    Legislative Solutions to Revive Travel and Tourism and Create
    Jobs.
        GBTA, as the premier business travel and meetings trade
    association, is headquartered in the Washington, D.C., area.
    GBTA serves the global network of more than 28,000 corporate
    travel policy professionals and over 125,000 constituents
    within the business travel industry. We represent an industry
    that in 2019 accounted for $1.9 trillion globally and $345
    billion in the U.S. alone.
        For the last 12 years GBTA has produced an annual business
    travel index which is a comprehensive study of business travel
    spending and growth covering 75 countries across 48 industries.
    Our most recent study was released in February 2021 and it was
    based on Fourth Quarter 2020 data.
        This analysis projected that the financial impact of global
    travel decline from the COVID-19 pandemic was expected to be 10
    times that of the Great Recession or 9/11. Our forecast
    estimated a full global recovery in business travel no earlier
    than 2024 and in the U.S. 2025.
        In fact, we estimate this year's global business travel
    spending would be no greater than $842 billion, a loss of 40
    percent since 2019, and focusing just within the U.S., business
    travel spend for 2021 is estimated to be less than $145 billion
    this year, a decline of 57 percent, and because this study was
    released in February, these estimates do not factor in the
    latest considerations, especially delayed restart plans due to
    impacts related to the Delta variant.
        GBTA also conducts a monthly COVID-19 recovery poll of our
    constituents and our recent data shows renewed negativity in
    business travel sentiment within especially the past 2 months.
        GBTA's early summer polling showed that 61 percent of U.S.
    companies were already conducting some non-essential domestic
    business travel. Of those not traveling, two-thirds planned to
    resume domestic travel within 3 months. However, by august that
    figure had fallen to one-fourth as COVID-19 cases were once
    again rising.
        As I've put forth, the business travel industry needs
    additional support and resources to recover. As such, GBTA
    supports the inclusion of the Omnibus Tourism Act of 2021 and
    the Build Back America Plan as a positive step in restoring
    global business travel and meetings in the U.S. and abroad.
        While there are many good policy ideas in this legislation,
    I will focus here on two: the implementation and support of
    Visit America and needed improvements in the visa process.
        As restrictions on international travel ease, it will be
    vital for Visit America and promotion of travel to the U.S. to
    inform the world that America is safe and open for business.
        Additionally, there is no question that the 212(f)
    restrictions on European Union, U.K., and other travelers
    visiting the U.S. dramatically impacted business travel. This
    is a policy that began in early 2020 and whose restrictions
    were just updated yesterday for November implementation, a very
    long 18 months and which we welcome ending.
        International companies welcome the safe reopening of the
    U.S. for their business travelers and need to know that we will
    remain a safe destination. The Visit America Program and the
    items related to interagency cooperation, strategic divisions
    on tourism, and improving safety and screening are necessary to
    achieve this goal.
        Second, visas and by extension, passports are vital to
    business travel. Prior to COVID-19, the process for obtaining
    visas and passports was already strained. Now the processing
    time is significantly longer. We're getting reports of visa
    appointment availability in some countries stretching into mid-
    2022. Passport-enabling companies are reporting to us that the
    Department of State standard delivery time for passports has
    tripled from 6 weeks pre-COVID to 4 months today. Expedited
    passport delivery has gone up sixfold from 2 weeks to 3 months.
        So we urge the expediting of visa and passport processing
    times so that as business travelers return to travel and return
    to business they can have the proper documentation.
        As we look ahead, the business travel industry is still in
    deep recovery mode and will be for the near future. It is
    important that government and business work together mitigating
    risks, such as by increasing vaccination uptake.
        One thing we do know, it's time that we get business
    travelers back in the skies, on trains, and on the road again
    safely and responsibly.
        Thank you very much.
        [The prepared statement of Ms. Neufang follows:]

        Prepared Statement of Suzanne Neufang, Chief Executive Officer,
                       Global Business Travel Association
        Chairwoman Rosen, Ranking Member Scott, and Members of the
    Subcommittee: my name is Suzanne Neufang, and I am Chief Executive
    Officer of the Global Business Travel Association (GBTA). Thank you for
    the opportunity to testify regarding ``Legislative Solutions to Revive
    Travel and Tourism and Create Jobs.''
        GBTA is the world's premier business travel and meetings trade
    organization headquartered in the Washington, D.C. area with global
    operations and 37 chapters across this country. Our membership of
    travel buyers and suppliers around the world manages more than $345
    billion USD in global business travel and meetings expenditures
    annually. GBTA delivers world-class education, events, research,
    advocacy, and media to a growing global network of more than 28,000
    travel professionals and 125,000 active stakeholders and constituents
    within our industry.
        For the last 12 years, GBTA has produced an annual Business Travel
    Index which is an exhaustive study of business travel spending and
    growth covering 75 countries across 48 industries. Our last study
    iteration came out in February 2021 based on Q4 2020 data.
        This analysis projects that the financial impact of global travel
    decline from the COVID-19 pandemic is expected to be ten times that of
    the Great Recession and 9/11. And the latest forecast estimates a full
    global recovery in business travel no earlier than 2025.
        We estimate this year's global business travel spending will be no
    greater than $842 billion USD--an approximate $550 billion USD decline
    from the previous forecast due to the ongoing pandemic. For the US,
    business travel spend for 2021 is estimated to be no greater than
    $144.7 billion USD--a forecasted decline of $192 billion USD.
        And because this GBTA study was released back in February, these
    estimates do not factor in the latest considerations, delayed restart
    plans, and other impacts related to the Delta variant.
        Additionally, our data found that the true global financial impact
    of COVID-19, which began in Q2 2020, resulted in an expected 68 percent
    year-over-year decline of business travel spend globally (to $738
    billion USD) for 2020 compared to 2019.
        While most corporations are well positioned financially to resume
    investment in business travel now, a full recovery will require
    critical mass and concerted efforts to get business travelers back on
    the road again. This includes global vaccinations; implementation of
    health controls into duty of care policies at the corporate level;
    favorable business traveler sentiment to travel for work again;
    government attention and cooperation for consistent protocols; and a
    return to normal borders for international and national travel.
        Prior to February 2021, we expected these initiatives to be well
    underway with strong vaccination progress throughout 2021--and so
    global business travel was estimated to recover to its 2019 $1.4
    trillion in annual expenditures by 2024, just 2 percent shy of annual
    pre-pandemic totals. But again, those estimates did not account for
    Delta variant setbacks seen in the recent months.
        In fact, GBTA's recent monthly COVID-19 Recovery Poll of our
    constituents shows significant declines in travel bookings in the
    recent months driven by the Delta variant.
        Since the beginning of the pandemic, GBTA has been tracking
    sentiment and data around business travel's COVID-19 recovery to help
    our members and the industry move through these current times. GBTA's
    early summer polling showed about 61 percent of U.S. companies were
    already conducting some non-essential domestic business travel. Of the
    remaining 39 percent, two-thirds planned to resume domestic travel
    within one to three months--but by August, that percentage had fallen
    to less than one-third (28 percent) as COVID-19 cases started to rise
    again and the Delta variant spread.
        As I have put forth, it is easy to see the business travel industry
    needs additional support and resources to recover. As such, GBTA
    supports the inclusion of the Omnibus Tourism Act of 2021 in the Build
    Back America plan as a positive step in restoring global business
    travel and meetings in the U.S. and abroad.
        While there are many good policy ideas in this legislation, I will
    focus here on two: the implementation and support of ``Visit America''
    and needed improvements in the visa process.
        As restrictions on international travel ease, it will be vital for
    Visit America and promotion of travel to the U.S to inform the world
    that America is safe and open for business.
        Additionally, there is no question that the 212f restriction on
    European Union and UK travelers visiting the U.S.--a policy that began
    under President Trump but continued under President Biden--has
    dramatically impacted business travel.
        Using our annual GBTA Convention as a very narrow example, due to
    current travel restrictions, our association and travel industry
    members stand to lose significant business opportunities and revenue in
    an already tight financial year. This is because international
    companies are unable to send employees to the event this year--or face
    trying to secure difficult-to-obtain exceptions to do so.
        For perspective, GBTA's 2019 Convention in Chicago welcomed over
    7,000 attendees from the U.S. and over 50 countries. Chicago reported
    an economic impact of $20 million USD. After canceling the 2020
    Convention, GBTA is holding our Convention this year in November in
    Orlando, Florida. Because of COVID and U.S. policies, we expect
    significantly fewer attendees overall and very few international
    attendees and exhibitors.
        International companies need to know it is safe to send their
    employees to meetings and events in the U.S. The Visit America program
    and all other items related to interagency cooperation, strategic
    decisions on tourism and improving safety and screening are necessary
    to achieve this goal.
        Secondly, visas--and by extension passports--are vital to business
    travel. Prior to COVID-19, the process for obtaining visas and
    passports was already strained. Now, the processing time is
    significantly longer. GBTA is getting member reports of visa
    appointment availability in some countries stretching into mid-2022.
    Passport-enabling companies are reporting the Department of State's
    standard processing and delivery time for passports has tripled from a
    pre-COVID estimated six weeks to about four months now. Processing and
    delivery for expedited passports has gone up six-fold, from two weeks
    to about three months.
        So, we would urge the administration to expedite visa and passport
    processing times, so that as business travelers return to travel and
    return to business, they can have the proper documentation.
        Visa adjudication is necessary, and the language included in the
    Omnibus Tourism Act is necessary to improve a system in desperate need.
        As we look ahead, the business travel industry is still recovering,
    and will be for the near future. That is why it is so important that
    government and business work together to end the pandemic and to
    increase vaccination uptake.
        But one thing we do know--it's time that we get back to travel,
    safely and responsibly.
        And while we acknowledge that virtual meetings will likely forever
    have a place in the business world, every business leader I have spoken
    to in the past several months also acknowledges there is a great deal
    getting missed by not being able to hold face-to-face meetings for the
    most important kinds of discussions and relationship building
    opportunities.
        Business travel matters--for economic, cultural, business and
    government prosperity going forward.

        Senator Rosen. Thank you again, Ms. Neufang. We appreciate
    you being here, as well.
        Our next witness testifying remotely is Christopher
    Bidwell, Senior Vice President of Security at Airports Council
    International--North America, ACINA.
        Mr. Bidwell leads ACINA's efforts on aviation security,
    oversees its regulatory activities, and is a subject matter
    expert on security policy, domestic and international aviation
    security, and airport regulation.
        He serves on several working groups and committees,
    including the TSA Aviation Security Advisory Committee where he
    is vice chair.
        Mr. Bidwell is also a multi-engine instrument-rated
    commercial pilot.
        Mr. Bidwell, you're now recognized for your opening
    remarks.

                  STATEMENT OF CHRISTOPHER R. BIDWELL,

                   SENIOR VICE PRESIDENT OF SECURITY,

             AIRPORTS COUNCIL INTERNATIONAL--NORTH AMERICA

        Mr. Bidwell. Thank you, Chair Rosen and Ranking Member
    Scott and Members of the Subcommittee.
        I'm Christopher Bidwell, Senior Vice President of Security
    at Airports Council International--North America. I appreciate
    the invitation to participate in today's hearing.
        ACINA and our member airports greatly appreciate the
    subcommittee's interest in restoring safe and healthy travel to
    destinations throughout the United States.
        While there is an uptick in passenger volumes at airports
    this summer, the extended duration of the global pandemic
    coupled with the rise in the Delta variant has again caused our
    numbers to dip well below 2019 levels.
        We are experiencing a downturn in leisure travel, a delay
    in the return of business travel, and the continued closure of
    our international borders.
        As we look for ways to emerge from this crisis, I would
    like to offer the following policy solutions that would greatly
    assist the travel and tourism industry as we head toward a
    recovery.
        First, the most fundamental step the U.S. Government can
    take is reopening our borders to international travel.
    America's airports applaud the Biden Administration's
    announcement to allow fully vaccinated passengers to travel to
    the United States. This latest step responds to our request for
    a plan to restore international travel which is critical to the
    aviation industry's economic recovery. We look forward to
    working with our government and industry partners to ensure a
    smooth implementation.
        Second, in order to keep security checkpoints and Federal
    inspection stations open, operational and safe, Congress must
    ensure there is a sufficient number of CDP and TSA officers as
    well as technology to support the return of international
    travel.
        We must avoid the long lines at checkpoints that create
    security vulnerabilities and minimize the potential for
    passengers and baggage to miss their connecting flights.
        Third, several provisions contained in the draft of the
    Omnibus Travel and Tourism Act would have a direct benefit to
    airports and the travel and tourism industry. We appreciate the
    inclusion of the Ensuring Health and Safety in the Skies Act
    which ACINA strongly supports. A task force of Federal agencies
    advised by Federal aviation industry partners would be very
    helpful in developing meaningful guidelines and developing
    recommendations to address the challenging operational and
    infrastructure issues related to COVID-19 recovery and future
    pandemic planning.
        We also appreciate the inclusion of a TSA pilot program for
    one-stop security for international passengers connecting to
    domestic flights in the United States. ACINA has been a long
    supporter of one-stop security.
        Additionally, we appreciate the inclusion of provisions
    designed to raise the profile of travel and tourism industry
    within the U.S. Government and to increase participation in
    trusted traveler programs.
        Although there may be some benefit from cross-training TSA
    canines to detect COVID-19, taking TSA canines offline for new
    training and certification could reduce the time they are
    available to screen passengers and baggage for explosives. This
    raises potential security concerns.
        We encourage Congress and TSA to use the findings from a
    recently launched K-9 COVID-19 Detection Pilot at Miami
    International Airport to inform any similar program at TSA.
        Finally, one thing that has not changed during the
    pandemic: our airports continue to face substantial
    infrastructure needs. In addition to creating jobs, new
    investment in airports can help local communities attract air
    service which increases competition and leads to lower air
    fares for passengers.
        We sincerely appreciate the $20 billion in airport
    infrastructure funding included in the Senate's bipartisan
    Infrastructure Bill. This one-time infusion of capital will
    help jumpstart new projects at airports. However, given the
    $115 billion in infrastructure needs at airports that as
    documented in ACNI's Infrastructure Report, Congress must find
    new ways to ensure funding for these much-needed improvement
    projects.
        Airports are leading economic engines in their communities
    and an integral part of the travel and tourism industry. ACI-NA
    and our member airports will continue to work with the
    Subcommittee and our government and industry partners to
    weather this crisis so we can get Americans and international
    passengers traveling again through an aviation system that is
    stronger, safer, more secure, and more resilient than ever.
        Thank you for this opportunity today. I welcome your
    questions.
        [The prepared statement of Mr. Bidwell follows:]

    Prepared Statement of Christopher R. Bidwell, Senior Vice President of
            Security, Airports Council International--North America
        Thank you, Chair Rosen and Ranking Member Scott, for inviting me to
    participate in today's hearing. I am Christopher Bidwell, Senior Vice
    President of Security at Airports Council International--North America
    (ACI-NA), the trade association representing the local, regional, and
    state governing bodies that own and operate airports in the United
    States and Canada. I appreciate this opportunity to speak with you
    about the current state of the travel and tourism industry,
    particularly as it relates to instilling public confidence in air
    travel, enhancing security, and setting a solid foundation for the
    future of aviation.
        As we continue to navigate these unprecedented times, U.S. airports
    are very grateful for the $20 billion in COVID-relief support provided
    by Congress, which has truly been a lifeline for airports across the
    country. The COVID-relief grants are helping airports offset some of
    the financial damage from the abrupt, unexpected drop in air travel
    over the past 18 months, and will help airports prepare for more
    travelers to take to the skies in the months and years ahead.
        Since the beginning of the pandemic, airports have been intensely
    focused on providing for the health and safety of their passengers,
    employees, and tenants. Airports have increased cleaning of public
    areas, checkpoints and restrooms; added more hand sanitizing stations
    for passengers and employees; installed plexiglass barriers in
    passenger-facing areas; procured additional cleaning supplies and
    personal protective equipment; upgraded HVAC systems; and implemented
    physical distancing measures.
        We also continue to coordinate closely with the Federal Aviation
    Administration (FAA), Transportation Security Administration (TSA),
    Customs and Border Protection (CBP), Centers for Disease Control and
    Prevention (CDC), and others on recovery efforts, regulatory guidance,
    and flexibility on regulatory requirements that are crucial in helping
    airports remain operational while ensuring the safety, security, and
    health of the traveling public. Of particular importance is our
    stakeholder coordination role to ensure the consistency of messaging,
    which is critical to instilling passenger confidence. I want to commend
    the agency leaders for partnering with ACI-NA and our member airports
    on these important efforts.
        While there was a healthy uptick in passenger volumes at airports
    this summer, the extended duration of the global pandemic, coupled with
    the rise of the Delta variant, has caused our numbers to again dip well
    below 2019 levels as we experience a downturn in leisure travel, a
    further delay in the return of business travelers, and the continued
    closure of our international borders. ACI-NA and our airport members
    greatly appreciate this subcommittee's interest in restoring safe and
    healthy travel to destinations throughout the United States. I would
    like to offer the following Federal policy solutions that we feel would
    greatly assist the travel and tourism industry as we head towards
    recovery.
        First, the most fundamental step the U.S. government could take to
    assist the travel and tourism industry would be reopening our borders
    to international travel. Many other countries, including neighboring
    Canada, have already devised ways to safely open their borders, and it
    is time for the United States to do the same. Press reports indicate
    the White House is developing new processes and procedures for
    international travelers to follow that will eventually replace the
    current travel restrictions. We hope the White House moves swiftly to
    put these new protocols in place, and we encourage the Federal agencies
    to coordinate with industry to ensure a quick and smooth implementation
    of the new measures.
        Second, once international travel resumes Congress must ensure
    there are sufficient numbers of CBP officers, TSA officers, and
    technology in place to keep security checkpoints and Federal inspection
    stations open, operational, and safe. Long passenger queues create
    security vulnerabilities associated with large groups of people
    congregating in public areas. In addition, there is the potential for
    misconnecting checked baggage and passengers who miss their intended
    flights.
        Particularly for international travel, we recommend directing
    additional resources towards retaining and hiring additional CBP
    officers at the ports-of-entry and fully implementing the biometric
    entry-exit program. CBP user fees have decreased tremendously during
    this pandemic, which has put a huge hole in the agency's budget, both
    this year and next. ACI-NA remains at the forefront of a diverse
    coalition of industry stakeholders who support improving travel and
    trade facilitation through CBP ports-of-entry. The coalition--which
    includes leading voices from various shipping, tourism, travel, trade,
    law enforcement, and employee groups--continues to push for adequate
    funding to support the existing CBP workforce and to help it grow to
    meet future travel and trade demands.
        Airports also are working with stakeholders in their facilities--
    including Federal agencies, airlines, and tenants--to develop
    ``touchless'' aviation security screening processes that provide
    enhanced security, lower false alarms, and adequate physical distancing
    for passengers and baggage moving through TSA checkpoints and CBP
    ports-of-entry. In order to further enhance security and provide for
    the health of the traveling public, we recommend additional funding for
    TSA to procure and deploy Credential Authentication Technology with a
    camera, enhanced Advanced Imaging Technology, and Computed Tomography
    at security checkpoints. These technologies increase security
    effectiveness and reduce false alarms and touch points, while
    maintaining physical distancing.
        To achieve these workforce and equipment goals, we recommend
    finally ending the diversion of user fees designed to enhance security.
    Each year billions of dollars in both TSA and CBP user fees are
    needlessly diverted from their intended purpose to subsidize other
    Federal programs. In this time of national emergency, it is critical to
    stop these budgetary gimmicks, end the fee diversion, and ensure the
    revenue is restored to its intended use of funding and enhancing
    crucial aviation security programs.
        Third, even while in the midst of the pandemic, Congress should
    prepare for the future of travel. Several provisions contained in the
    draft of the Omnibus Travel and Tourism Act would have a direct benefit
    to airports and the greater travel and tourism industry.
        We appreciate that the draft legislation includes the Ensuring
    Health Safety in the Skies Act, which passed the Senate unanimously
    last year. ACI-NA strongly supports this provision. A task force of
    Federal agencies--advised by aviation industry partners--would be very
    helpful in developing meaningful guidelines and recommendations to
    address the challenging operational and infrastructure issues related
    to COVID-19 recovery and future pandemic planning.
        We also appreciate that the draft contains a TSA pilot program for
    one-stop security, through which international passengers and their
    baggage from up to 10 locations would not need to be re-screened by TSA
    upon arrival in the United States prior to boarding their domestic
    connecting flight if the last point of departure airport has a
    commensurate level of security as the United States. Canada has
    successfully implemented a similar program for its international
    connections, and ACI-NA has long supported the United States
    establishing its own program.
        Additionally, we appreciate that the draft contains provisions
    designed to raise the profile of the travel and tourism industry within
    the U.S. government, particularly by having officials within the
    Departments of Commerce and Transportation coordinate and advocate for
    policies that would expand travel and tourism opportunities both
    domestically and internationally. Restoring Brand USA and exploring
    ways to increase participation in Trusted Traveler programs would also
    benefit the travel and tourism industry.
        And while there may be some benefit from cross-training TSA canines
    to detect for COVID-19, as included in the draft legislation, we want
    to ensure these highly trained dogs are available for their primary
    function of screening passengers and their baggage for explosives.
    Taking any dogs off-line for retraining, certification, or additional
    breaks could reduce the time they are available at screening
    checkpoints. This raises potential security concerns and may increase
    passenger wait times. We recommend Congress and the TSA use the
    findings from a recently launched COVID-19 detection canine pilot at
    Miami International Airport to inform any similar program initiated by
    the TSA.
        Finally, one thing has not changed during the pandemic: our
    airports continue to face substantial infrastructure needs. As
    travelers begin to return to America's airports, inadequate airport
    infrastructure that fails to meet the growing needs of local businesses
    and tourists puts in jeopardy the economic recovery of American cities,
    states, and regions. In addition to creating jobs, new investments in
    airports can be valuable tools in helping local communities attract air
    service, which increases competition and leads to lower airfares for
    passengers. Airports need additional resources to build the terminals,
    gates, checkpoints, and ramp areas necessary to attract new air
    carriers and entice existing ones to expand service. The traveling
    public gets more choices and lower airfares when airports can build the
    facilities that provide more airline options and more service
    alternatives.
        In March 2021, ACI-NA released an updated infrastructure needs
    report detailing the more than $115 billion in infrastructure needs
    across the national airport system over the next five years. Since this
    survey was conducted during the pandemic last summer, it does not fully
    account for all of the new public health-related infrastructure
    upgrades airports need to make, such as future HVAC improvements to
    provide airports the ability to keep up with developing air quality
    technology, additional space for physical distancing near gates, and
    touchless technology to assist passengers through the airport. Coupled
    with a current debt burden of nearly $90 billion from past projects,
    the report clearly shows that our airports are falling further behind
    in their efforts to upgrade their facilities and improve the overall
    experience for their passengers.
        We greatly appreciate the $20 billion in airport-infrastructure
    funding included in the Senate's bipartisan infrastructure bill. This
    one-time infusion of capital will help jumpstart new projects at
    airports around the country. Given the $115 billion in infrastructure
    needs across the system, though, Congress must find new ways to ensure
    continuity in funding more of these much-needed improvement projects
    once the new Federal funding has been exhausted.
        As leading economic engines in their communities, airports are an
    integral part of the overall travel and tourism industry. ACI-NA and
    our member airports will continue to work together with our government
    and industry partners to weather this current crisis so we can get
    Americans and international passengers traveling again though an
    aviation system that is stronger, safer, more secure, and more
    resilient than ever.
        Thank you for this opportunity today. I welcome your questions.

        Senator Rosen. Well, thank you, Mr. Bidwell. Again, we
    appreciate you being here.
        Now rounding out our panel, I'd like to introduce our final
    witness testifying in person today and so thankfully, sir,
    because when you do all this traveling, you need somewhere to
    stay and so, Mr. Chirag Shah, Senior Vice President of
    Government Affairs at the American Hotel and Lodging
    Association, AHLA.
        Mr. Shah assumed his role at AHLA in March of this year, a
    critical time for the hospitality industry. Prior to joining
    AHLA, Mr. Shah served as Vice President of Government Affairs
    and Counsel at the Asian American Hotel Owners Association.
    He's also a member of the Boards of the U.S. Travel
    Association, the California Hotel and Lodging Association, the
    Pennsylvania Restaurant and Lodging Association, the Florida
    Restaurant and Lodging Association, the South Carolina
    Restaurant and Lodging Association, the Coalition of Franchisee
    Associations, and the Georgia Statewide Human Trafficking Task
    Force.
        Mr. Shah, you are recognized for your opening remarks.

                       STATEMENT OF CHIRAG SHAH,

               SENIOR VICE PRESIDENT OF FEDERAL AFFAIRS,

                 AMERICAN HOTEL AND LODGING ASSOCIATION

        Mr. Shah. Thank you for the opportunity to testify today. I
    look forward to sharing with you the hotel industry's
    perspective on how to revive travel and tourism and bring back
    our workforce in response to COVID-19.
        My name is Chirag Shah. I serve as Senior Vice President at
    the American Hotel and Lodging Association and for more than a
    hundred years AHLA has proudly represented all segments of the
    U.S. lodging industry, including our associates, brands, and
    hotel owners.
        For our members what matters most is serving their guests,
    creating good jobs, and uplifting their communities.
        Senators, this is the most severe crisis in the history of
    the hotel industry. Without relief, we are facing catastrophic
    economic impacts for the entire American economy and for the
    communities that you represent.
        Here's the snapshot. Because of historically low occupancy
    rates, business declines are not only worse than the Great
    Recession, they're also worse than the Great Depression. Hotel
    revenues are nine times worse than after 9/11 and the industry
    lost over 700,000 jobs in 2020.
        As vaccinations became available and summer arrived, we
    were hopeful for a rebound but the uptick in travel did not
    last. The Delta variant is wreaking havoc. Now over two-thirds
    of business travelers and half of all leisure travelers are
    postponing or canceling their trips. The decline in business
    travel alone amounts to half of all revenues and will cost the
    hotel industry nearly $59 billion. Revenues will be down 50
    percent and hotels will lose $97 billion in 2021 alone.
        Hotels are now bracing for another wave of hardship and
    staff reductions and the worse effects are in big cities that
    employ the majority of our workforce and rely on conventions
    and events.
        Just last week urban market hotels were down more than 40
    percent in revenue compared to 2019. Our industry will not
    recover until 2024.
        The pandemic has also been devastating to the hotel work
    force. 500,000 jobs that existed before the pandemic will not
    return this year. The data is stark compared to the rest of the
    national economy. While overall unemployment dropped to 5.2
    percent in August, the accommodations sector remained at 14.5
    percent, nearly three times the national average. The pandemic
    has eliminated a decade of job growth in the hotel industry.
        Our industry is also experiencing a critical staffing
    shortage. Many laid-off and furloughed employees found other
    jobs or moved away last year. As hoteliers seek to rebuild,
    they cannot find enough workers despite increasing compensation
    and offering additional benefits. Needing staff while also
    enduring historically low occupancy rates is one of the cruel
    ironies inflicted by this pandemic.
        The road to recovery for our industry remains long.
    However, successful efforts in Congress to restore travel and
    tourism will be a catalyst for expansive economic development.
    We're grateful for this committee's efforts on the Omnibus
    Tourism Act or the Tour Bus which will provide vital funding
    for infrastructure for our beleaguered economy as we continue
    toward recovery.
        Visit America will bring back international visitors. In
    2020, international travel fell by 76 percent and we welcome
    Congress' goal to see a 116 million visitors who spend $445
    billion per year by 2032. This sends a message that America
    will be open for business when travel returns.
        The bill also establishes a new Assistant Secretary of
    Commerce for Travel and Tourism. As a Presidential appointee
    requiring Senate confirmation, the role will command
    considerable authority to promote travel and tourism, develop
    critical infrastructure, and marshal resources.
        The Tour Bus will also enable Brand USA to access $250
    million previously collected for American travel promotion and
    this discussion could not come at a more appropriate time with
    the Biden Administration's announcement just yesterday easing
    travel restrictions for overseas travelers beginning this
    November.
        Marketing is the greatest tool to reclaim America's share
    of travelers and a strong Brand USA will re-establish the
    United States as a premier travel destination and shorten the
    time for our recovery.
        We also appreciate the foresight for streamlining security
    protocols for air travelers and limiting burdens and easing the
    travel experience. This will put more heads in beds at
    America's hotels.
        In addition to the important measures included in the Tour
    Bus, we urge support of direct relief for the lodging industry.
    Despite being the hardest hit by the crisis, hotels are the
    only segment of the hospitality sector yet to receive direct
    COVID-related aid. The Save Hotels Jobs Act will provide 3
    months of payroll and benefits for the most severely impacted
    hotels.
        Congress can also significantly jumpstart travel by passing
    the Hospitality and Commerce Job Recovery Act. Tax incentives
    will motivate businesses to contract for conventions, trade
    shows, and large group events which often take nearly a year to
    plan. Passage of this bill would drive travel demand and
    support millions of jobs and small businesses.
        Chair Rosen and Ranking Member Scott, thank you for the
    opportunity to share the impact of COVID-19 on the hotel
    industry with you today.
        Congress can take significant action to accelerate the
    recovery and soften the scars left by the pandemic. America's
    hotel industry looks forward to working with you to revive
    travel and tourism together.
        Thank you for your leadership.
        [The prepared statement of Mr. Shah follows:]

       Prepared Statement of Chirag Shah, Senior Vice President, Federal
     Affairs & Policy Counsel, American Hotel & Lodging Association (AHLA)
    I. Introduction
        Chairwoman Rosen, Ranking Member Scott, and Members of the Senate
    Commerce Committee Subcommittee on Tourism, Trade and Export Promotion,
    I want to thank you for the opportunity to testify before you today and
    to share with you the hotel industry's perspective on how to revive
    travel and tourism and bring back our workforce in response to the
    COVID-19 Pandemic.
        I look forward to a thoughtful discussion about the legislative
    proposals currently before Congress, including the draft Omnibus
    Tourism Act of 2021, which can help the broader travel industry regain
    international and domestic market share through innovative policies and
    strategies.
        My name is Chirag Shah and I serve as the Senior Vice President of
    Federal Affairs and Policy Counsel at the American Hotel & Lodging
    Association (AHLA). For more than 100 years AHLA has proudly
    represented all segments of the U.S. lodging industry including our 2.3
    million associates, iconic global brands, hotel owners, REITs,
    franchisees, management companies, independent properties, bed and
    breakfasts, state hotel associations, and industry suppliers.
        The hotel sector is also a proud majority minority-owned industry,
    as more than half of the hotels in the United States are minority
    owned. Moreover, 90 percent of all hotels in the United States are
    franchised properties, with a majority owned by small business owners.
    The hotel franchise model has paved the way for small business
    entrepreneurship for tens of thousands of immigrants, women, and people
    of color to achieve the American dream. AHLA advocates for our members
    in Washington, DC, and in state capitals across the country so our
    members can continue doing what matters most: serving guests, creating
    jobs, and uplifting their communities.
    II. Economic Impact of the COVID-19 Pandemic on the Hotel Industry
        The lodging industry is still struggling to recover from the health
    and economic crisis caused by COVID-19 and subsequent variants. Hotels
    have suffered unprecedented devastation over the past eighteen months,
    with business declines not only worse than those seen in the Great
    Recession, but worse than the Great Depression. The impacts on hotel
    revenues were nine times worse than those we saw after 9/11.\1\ Hotels
    across the country were forced to reduce operations or shutter, leading
    to a loss of more than 700,000 jobs in 2020. Through no fault of their
    own and in an effort to follow an ever-changing landscape of Federal
    and local guidance, hoteliers who previously thrived are now facing, by
    far, the worst financial and employment crisis in the history of the
    hotel industry because of COVID-19.
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        \1\ https://www.ahla.com/sites/default/files/
    FACT%20SHEET_COVID19%20Impact%20on%20
    Hotel%20Industry_4.22.20_updated.pdf
    ---------------------------------------------------------------------------
        While over the summer it appeared that there was light at the end
    of the tunnel, the last month has seen a return to a challenging
    outlook for the future. According to a recent Morning Consult poll,
    two-thirds of business travelers \2\ and more than half of leisure
    travelers \3\ are now postponing and/or canceling trips concurrent to
    the rise in COVID-19 cases. With the Delta variant wreaking havoc,
    hotels are now bracing for another wave of hardship and staff
    reductions. Leisure travel season is ending and a lack of business
    travel and group meetings (which make up the majority of hotel revenues
    in a normal year) this fall and winter will devastate an industry still
    reeling from the depths of the pandemic.
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        \2\ https://www.ahla.com/sites/default/files/
    Business%20Travel%20One%20Pager%208.25.21
    .pdf
        \3\ https://www.ahla.com/sites/default/files/
    Leisure%20Travel%20One%20Pager.pdf
    ---------------------------------------------------------------------------
        Hotel revenues are projected to remain down more than 50 percent in
    2021 and will not recover before 2024. The lack of business travel
    alone this year will cost the hotel industry nearly $59 billion \4\ and
    overall, it is estimated hotels will lose $97 billion in 2021.
    Nationwide, occupancies are declining rapidly as Delta variant concerns
    increase and critical meetings and business travel, as well as
    international visitors, fail to materialize. This issue is particularly
    acute in the major markets and cities that employ the vast majority of
    our workforce and are disproportionately reliant on these types of
    travelers. Last week, urban market hotels were down more than 40
    percent in revenue compared to 2019, according to STR,\5\ and we expect
    these figures to worsen through the rest of the year.
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        \4\ https://www.ahla.com/sites/default/files/
    Business%20Travel%20State%20by%20State%20
    Data%20One%20Pager%209-13.pdf
        \5\ https://str.com/press-release/str-us-hotel-results-week-ending-
    11-september
    ---------------------------------------------------------------------------
    III. Economic Impact of COVID-19 on the Lodging Workforce
        The pandemic has also been particularly devastating to the hotel
    workforce, as the recovery for America's hotels remains uneven.
    Industry experts estimate nearly 500,000 hotel jobs that existed pre-
    pandemic will fail to return this year.\6\ The data is stark compared
    to the rest of the national economy. While overall unemployment dropped
    to 5.2 percent in August, according to the Bureau of Labor Statistics
    (BLS), the accommodations sector remained at 14.5 percent, nearly three
    times the national average. The pandemic has eliminated a decade of
    hotel job growth over the past eighteen months. Leisure and hospitality
    account for 37 percent of all jobs lost since the onset of the
    pandemic--more than any other sector, and hotels are not projected to
    return to pre-pandemic levels until 2024, at the earliest. These data
    dramatically illustrate the peril in which the hotel industry remains
    with the uncertainty of international visitors, lack of business
    travel, and continued workforce challenges.
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        \6\ https://www.ahla.com/sites/default/files/
    Fact%20Sheet_2021%20State%20COVID19%20Im
    pact.pdf
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    Hospitality for Hope
        America's hoteliers have answered the call to serve their
    communities, even as their own livelihoods remain endangered. The hotel
    workforce is widely considered family. Hoteliers have had to make
    heartbreaking personnel decisions in order to keep their businesses
    from closing. Still, many hoteliers maintained payroll and benefits,
    and provided their employees with resources during the worst of the
    pandemic when occupancy rates hit historic lows. Throughout the
    country, and in the spirit of AHLA's ``Hospitality for Hope'' program,
    hoteliers opened their doors to medical workers and first responders,
    offered rooms to hospital staff in isolation to protect loved ones, and
    established special areas for frontline workers to rest and receive
    support.
        Hotels are pillars of our communities and have long invested in the
    people they serve. The lodging industry was proud to be among the first
    to voluntarily support those serving on the front lines of this public
    health emergency by partnering with federal, state, and local
    governments to offer over 17,000 rooms to healthcare workers and first
    responders through Hospitality for Hope. As employers, taxpayers and
    neighbors, hoteliers are proud to be an integral part of communities
    across America and are committed to strengthening and growing them
    together.
    Hotels are Hiring
        Concurrent to weathering the worst economic crisis in history for
    the lodging industry, hoteliers are also faced with a critical staffing
    shortage. Many laid-off and furloughed employees found other jobs or
    moved away during the most severe portions of the pandemic. Now as
    hoteliers seek to rebuild, it remains a challenge to find enough
    workers to fully staff hotels across the country. Hoteliers struggled
    to staff up during the short-lived summer leisure travel recovery and
    remain short of employees to properly serve even the relatively limited
    numbers of guests travelling through the rest of the year. The
    juxtaposition of needing staff while simultaneously enduring
    historically low occupancy rates is one of the cruel ironies inflicted
    by the pandemic. Nevertheless, the lodging industry has risen to again
    put its workers first. According to an AHLA survey, hoteliers are
    offering significant, new benefits including higher average hourly
    wages, increased scheduling flexibility, and more healthcare benefits.
    The hotel industry provides workers not simply a job, but a pathway to
    a fulfilling career. AHLA's ``Hotels are Hiring'' campaign demonstrates
    the commitment to retaining and educating individuals for rewarding
    careers in a vibrant field.
        To help hotel associates advance in their careers, the AHLA
    Foundation awards over $1 million academic and professional development
    scholarships each year. The Foundation also offers two federally
    registered apprenticeship programs, which combine on-the-job learning
    with related education to help employees earn a fast-track to a raise
    and promotions and works with more than 70 affiliated schools to create
    opportunities for advancement. The lodging industry remains committed
    to its workforce, especially during this bleak time. The industry's
    leading advocacy initiatives including the Save Hotel Jobs Act and
    expanding the Employee Retention Tax Credit are exclusively for the
    benefit of hotel workers. We are grateful for the emphasis on workforce
    development in the Tour Bus legislation and look forward to working
    with this committee to help rebuild and revive the lodging workforce.
    Safe Stay
        In the early months of the pandemic, AHLA quickly mobilized the
    lodging industry and launched ``Safe Stay,'' an initiative focused on
    enhanced hotel cleaning practices, social interactions, and workplace
    protocols to meet the health and safety challenges and expectations
    presented by COVID-19. Representatives from all segments of the lodging
    industry collaborate on the Safe Stay program to ensure guests and
    employees are confident in the cleanliness and safety of America's
    hotels. Even as the industry experiences exceptional distress to
    business, we remain committed to protecting the people who stay and
    work in America's hotels. The industry best practices include enhanced
    cleaning standards throughout the hotel complex, superior cleaning
    products, social distancing practices, and regular updates to ensure
    the industry remains current with CDC and local guidelines. The
    industry rose to the challenge to face the public health crisis and
    will continue to lead on health and safety protocols to ensure peace of
    mind for guests and employees.
    IV. Legislative Solutions to Revive the Travel and Tourism Industry
        The nearly 60,000 hotels across the country are considerable
    drivers of the national economy. Prior to the pandemic, the lodging
    industry provided $660 billion annually to the GDP and $186 billion in
    federal, state, and local taxes. Hotels also supported 8.3 million
    American jobs, accounting for nearly $100 billion in payroll and
    benefits.\7\ Notably, the vast majority of the hotels in the United
    States are incorporated as small businesses which contribute
    extensively to their local communities. The road to recovery for our
    industry remains long; however, successful efforts in Congress to
    restore travel and tourism will be a catalyst for widespread economic
    development, business growth, and the revival of our workforce. We urge
    Congress's support of the measures below.
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        \7\ https://www.ahla.com/sites/default/files/oxford2019.pdf
    ---------------------------------------------------------------------------
    Omnibus Tourism Act of 2021
        As a result of the devastation our industry continues to endure, we
    are grateful for this committee's efforts on the Omnibus Tourism Act.
    The so-called ``Tour Bus'' would provide vital funding and
    infrastructure to our beleaguered industry as we continue towards
    recovery. This discussion comes at a particularly important time for
    America's hotels as the impacts from the pandemic, the renewed crisis
    from the Delta variant, and traditional slow seasons during the winter
    months are converging to compound the economic crisis facing hoteliers,
    employees, and local communities.
    Visit America
        We appreciate the Committee's inclusion of the Visit America Act in
    the Tour Bus, a crucial measure to support travel and tourism within
    the United States and to promote America as a destination for
    international visitors. Visit America provides a strategic vision for
    the sector in the larger American economy and establishes ambitious,
    but achievable metrics to accelerate economic development in the wake
    of the pandemic.
        International visitors are foundational to the travel industry.
    Unfortunately, the necessary safety measures enacted to prevent
    outbreaks and to avoid overwhelming health systems caused the near
    shutdown of all international travel to the United States. In 2020,
    international travel fell by 76 percent, resulting in the loss of $60
    billion dollars in economic output.\8\
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        \8\ https://www.ustravel.org/system/files/media_root/document/
    Research_Fact-Sheet_Industry
    -Table.pdf
    ---------------------------------------------------------------------------
        We welcome Congress's recommendation of specific benchmarks for
    international visitors and travel export dollars to reclaim economic
    losses and build back a better tourism framework for the country.
    Striving for 116 million visitors who spend $445 billion per year by
    2032 sends an significant message to the international community and to
    domestic businesses that America is eager to welcome guests and will be
    open for business when travel resumes. Moreover, Visit America supports
    these bold goals with a strategic plan to accomplish them. The bill
    establishes a senior leadership position in the U.S. Department of
    Commerce and enumerates standards for incremental growth and
    stakeholder consultation. As a presidential appointee requiring Senate
    confirmation, the new Assistant Secretary of Commerce for Travel and
    Tourism will command considerable authority to promote travel and
    tourism, develop critical infrastructure, and marshal resources. As one
    of the leading drivers of economic development in the United States,
    travel and tourism needs a dedicated advocate to streamline processes,
    collect and analyze data, support the industry workforce, and
    facilitate growth of the sector. We welcome the Committee's foresight
    in creating this new position.
        Accordingly, Visit America reinforces national travel and tourism
    strategy by charging the Commerce Department, through consultation with
    the U.S. Travel and Tourism Advisory Board and Tourism Policy Counsel
    to submit a ten-year growth strategy to identify goals and necessary
    resources to achieve them. The plan will not only consider
    recommendations on recovery from COVID-19, but also a long-term vision
    for continued economic development within the sector.
    Restoring Brand USA
        Brand USA was created by Congress in 2010 as a public-private
    partnership to promote international travel to the United States. Since
    2013, Brand USA's marketing efforts have resulted in more than 7.7
    million visitors to the United States who spent $25 billion and created
    $56 billion in total economic impact. Brand USA has been directly
    responsible for over $7 billion in federal, state, and local taxes over
    the past eight years, and supported 45,000 incremental jobs each
    year.\9\ Brand USA has long enjoyed wide bipartisan support, in part
    because for every dollar spent on the program, the United States
    receives an incredible $25 return on the investment. Brand USA's
    funding includes a modest collection of fees from international
    travelers. As a result of the pandemic and accompanying limitations on
    international travel, the program was unable to employ these resources
    to market the United States abroad. The Tour Bus will enable Brand USA
    to access $250 million in unobligated funds collected for American
    travel promotion. Marketing is the greatest tool to reclaim America's
    share of travelers. Providing Brand USA with adequate resources to
    accomplish its goals will reestablish the United States as a premier
    travel destination and shorten the time for recovery.
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        \9\ https://www.thebrandusa.com/resources/roi-study
    ---------------------------------------------------------------------------
    Study and Report on the Effects of COVID-19 on the Travel and Tourism
            Industry
        Since the pandemic began, economists have projected a long road to
    recovery for our industry. The Study and Report on the Effects of
    COVID-19 on the Travel and Tourism Industry in the United States will
    be central to highlighting the trends and impacts of the health and
    economic distress caused by this unprecedented crisis. Importantly, the
    study will provide context to policymakers of effects on the various
    segments that comprise our industry from international and domestic
    travel to the industry workforce, and influences on regional economies.
    Most critically, the study will also provide recommendations for
    promoting and assisting our industry's recovery. We applaud this
    Committee's emphasis on forward-looking, data-driven policy solutions
    in preparation for attracting guests to our hotels when it is safe for
    travelers to return.
    Pilot Program for One-Stop Security
        Although otherwise devastating, a national crisis can provide the
    opportunity to evaluate and reconfigure processes to enhance previously
    well-established systems. One such opportunity is in streamlining
    security protocols for air travelers by limiting screening burdens and
    easing the travel experience. The Tour Bus creates a pilot program for
    one-stop security screening for travelers departing from foreign
    airports whose final destination or connection is within the United
    States. The program contemplates extensive security protocols in
    coordination with several U.S. agencies and participating countries,
    and limits access to other international passengers and checked
    luggage. If successful, the pilot program would save time and ensure a
    more pleasant travel experience for international guests and encourage
    return visits--ultimately resulting in more heads in beds at American
    hotels.
    The Save Hotel Jobs Act
        In addition to the important measures included in the Tour Bus, we
    urge support of direct relief to the lodging industry workforce.
    Despite being among the industries hardest hit by the crisis, hotels
    are the only segment of the hospitality and leisure sector yet to
    receive direct COVID-related aid. The Save Hotel Jobs Act would create
    a bridge for our distressed sector by providing payroll and benefits
    assistance for our employees until hotel guests return and the travel
    sector begins to experience a more even recovery. The bill provides
    grants to hotels that can demonstrate a loss of at least 40 percent of
    gross receipts during a three-month period in 2020, compared to the
    same period in 2019. All grant funds support hotel workers and must be
    used exclusively on payroll and benefits including wages, leave,
    healthcare plan expenses, retirement, and payroll taxes.
        The relative uptick in leisure business during the traditional
    summer travel season was not enough to jumpstart the industry after
    eighteen months of devastation. The road to recovery for the hotel
    industry remains long and uneven, with occupancies dropping rapidly
    across the country. The 25 largest hotel markets are still down 22
    percent in revenue, a figure worsening by the week. The hotel industry
    generates 53 percent of its revenue from business travel and events in
    typical years. According to a recent Deloitte survey,\10\ corporate
    travel is projected to remain at only 30 percent of 2019 levels through
    the end of 2021. This lack of business travel will cost the hotel
    industry an estimated $59 billion in 2021 alone. AHLA is proud to have
    joined with UNITE HERE, the largest hospitality workers union in North
    America, to call on Congress to pass this bill focused on saving hotel
    jobs. We urge Congress to support this key bipartisan legislation to
    prevent permanent job losses and keep hotel employees on payroll.
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    Hospitality and Commerce Job Recovery Act
        Congress can also take significant action to jumpstart the travel
    and tourism industry through passage of the Hospitality and Commerce
    Job Recovery Act (HCJRA). Hotels are projected to lose nearly $60
    billion in business travel revenue this year and two-thirds of business
    travelers are currently cancelling or postponing future trips due to
    the Delta variant. With these trends and the impact of restrictions on
    both foreign and domestic travel, it is essential that Congress act to
    encourage business travel and meetings once the situation with the
    virus improves.
        The HCJRA provides tax incentives to motivate businesses to
    contract for conventions, trade shows, and large group events which
    often take nearly a year of lead time and planning. As mentioned above,
    widespread cancellations of business travel and the continued distress
    of urban markets dependent on group business illustrate the immediate
    challenges facing this sector. Tax credits designed to foster planning
    for meetings and events will position the American economy to rebound
    swiftly once localities fully reopen. The HCJRA will help to drive
    travel demand and support millions of jobs and small businesses in
    local communities.
    IV. Conclusion
        America's tourism industry remains resilient and will ultimately
    overcome this economic crisis. While increasing the vaccination rate is
    the single most critical action necessary to defeat the pandemic,
    Congressional action can accelerate the recovery and soften the
    economic scars left by COVID-19. The lodging industry is grateful to
    Chairwoman Rosen and Ranking Member Scott for facilitating this
    important discussion on how to best position the United States to
    receive international visitors and bolster domestic travel when our
    Nation prevails over COVID-19. Each of you knows firsthand the
    importance of travel and tourism from your personal interactions with
    hoteliers in your home states. You have seen how the pandemic has
    ravaged our industry and sown considerable uncertainty for travelers,
    small businesses, and hotel workers. With the leadership of this
    committee, and the tools you have established in the Omnibus Tourism
    Act, we are confident the U.S. travel and tourism industry, and
    America's hotels will survive this crisis and ultimately thrive once
    again. Thank you for the opportunity to share the perspective of the
    hotel and lodging industry. We look forward to working with you and
    your staffs to restore travel and tourism in the United States.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Senator Rosen. Well, thank you, Mr. Shah, and again I want
    to thank all of our witnesses for joining today and for their
    thoughtful opening statements.
        I'm now going to defer to the Ranking Member of our Full
    Committee, Senator Wicker, for his first round of questioning.
        Senator Wicker. Well, thank you very much, Madam Chair, and
    you're right, the testimony has been very helpful and very
    good. I appreciate it.
        I think I'll start with Ms. Neufang because I know if my
    colleagues have experienced what we have in our office, there's
    this huge problem with the delay in passports and visas.
        So I appreciate Ms. Neufang mentioning this on Page 3 of
    her testimony where she mentions visas and by extension
    passports are vital and I just wondered if you, Ms. Neufang, or
    any other members of the panel can pinpoint--I know this was
    already slow--but now it has gotten slower even as we've had
    fewer tourists.
        So why is that? Is it that people are working from home? Is
    it less convenient to do it that way? Would it be better if we
    got them back to the offices? I just would appreciate some
    assistance in understanding why at a time when there are fewer
    applicants the process for passports and visas is slower. You
    want to start, Ms. Neufang?
        Ms. Neufang. Yes. Thank you, Senator Wicker.
        So our view is that part of the problem is that the Hand-
    Carry Program has been shuttered indefinitely and for business
    travelers especially this is important and it didn't make sense
    even after passport services were resumed last summer. So this
    is the program used by U.S. business travelers who need to
    obtain passports quickly.
        So based on historical application data and the shortfall
    of applications received in 2020 due to the global COVID
    shutdown and travel restrictions, not only is there a lag now.
    but there is also an anticipation of some 30 million more
    passport applications coming between now and the end of the
    year, and we expect 30 percent of those to actually be business
    travelers.
        So we ask that Congress work with the State Department to
    resume that program of hand-carry, to work with passport
    service companies to solve some of that backlog within the
    Passport Development and Delivery Program.
        Senator Wicker. That takes nothing more than a decision by
    the department, is that correct? Is that your understanding?
        Ms. Neufang. That would be my understanding, but I would
    love the feedback of the committee and other witnesses, as
    well, for that, but that is my understanding.
        Senator Wicker. Anyone else want to weigh in on that
    question?
        Ms. Barnes. Senator, this is Tori Barnes with U.S. Travel.
    I would just also note that with regard to the visa processing,
    the consulate offices across the globe have largely been closed
    and that's been a negative contributing factor to the
    processing of visas, as well.
        So we'd love to see a reopening of those and an expedition
    of the visas, because if we don't start now, as we start to
    welcome these international travelers back in in November,
    we're going to have a lot of challenges in actually getting
    those folks here to the United States. So we would urge a quick
    expedition of those visas with regards to the State Department
    now.
        Senator Wicker. OK. And I certainly hope that people are
    listening in the State Department to that.
        While we've got you, you want to talk about how helpful the
    One-Stop Security Program would be and how it would not
    sacrifice safety protocols at all?
        Ms. Barnes. Sure. So the pilot program would allow for not
    more than 10 airports to be able to have a system in place to
    at least pilot the safe seamless type of environment for
    baggage.
        Right now, when you're coming from Paris to Dulles
    International, you would have to check your luggage and if
    you're going on to Kansas City, you'd have to take out your
    luggage, you'd have to have it be screened, you'd have to go
    back through Security. It's a very cumbersome process and it is
    definitely a deterrent to helping international travelers get
    to some of these other destinations.
        So a pilot program that would allow the luggage to kind of
    go through from the point of departure, so from Paris in this
    example, all the way to Kansas City would not only enable a
    better facilitation process but it would also allow for the TSA
    agents in IAD at this point to focus more on the domestic
    passengers that they need to focus on.
        So it would really streamline the process, create a better
    facilitation, and make for much happier passengers.
        Senator Wicker. Thank you. I think you stated a very good
    case for that. Perhaps other members of the panel can
    supplement their answer to the same question on the record, and
    I yield back, Madam Chair.
        Senator Rosen. Thank you, Senator Wicker.
        I appreciate everyone being here, and, of course, we want
    to bring back visitors. We want to increase travel spending and
    we want to create jobs and so according to the Las Vegas
    Convention and Visitors Authority, July 2021 was the strongest
    month for visitation to Southern Nevada since the start of the
    COVID-19 pandemic. Over three million people visited the Las
    Vegas Valley, Laughlin, and Mesquite in July of this year.
    However, it's still about 10 percent below the visitation
    numbers from July 2019, and the low numbers are slowly
    recovering our economy.
        Nevada's unemployment rate still close to 8 percent, more
    than twice the 3.7 percent rate we had the month before the
    pandemic began, and all this due in large part to a drop in
    visitors and travel spending.
        So, Ms. Barnes, according to data from U.S. Travel,
    nationwide travel spending in July 2021 was about $98.5 billion
    which was a drop of about 6.5 percent below those July 2019
    levels, of course, in line with the decrease in visitation.
        So how can the tourism legislation that we're putting
    together here in this Omnibus Bill, the Tour Bus, how does it
    help improve these numbers? What more would you like to see in
    this bill before we bring it to the Full Committee to create
    those good paying jobs and raise travel and tourism to pre-
    pandemic levels?
        Ms. Barnes. Sure. Thank you for the question. So in the
    near term, it would provide emergency funding for Brand USA
    which would obviously help to accelerate the return of
    international inbound travel.
        Second, in the medium term, the bill would really focus on
    Federal tourism policymaking to ensure that there are strategic
    plans, national goals, and coordinating policies in place to
    restore travel. It would also help to reduce visa wait times,
    to improve Customs and entry experience, and make strategic
    investments in travel infrastructure.
        In terms of what we could additionally include, we really
    think that the opportunity to expand the role of the Assistant
    Secretary to facilitate U.S. bids to bring in international
    conferences and events and help develop policies to grow the
    travel workforce are absolutely critical.
        For example, large conferences and sporting events generate
    significant export spending and $29 billion of export spending
    generated by IPW in 2018 that I noted earlier is the equivalent
    of the export of 69 Boeing 747s. So the travel has an export is
    a significant critically economic driver here in the United
    States.
        Travel jobs also provide a pathway from a workforce
    standpoint to the middle class and many travel businesses can't
    find or restore workers. So ensuring that there are Federal
    policies to support the long-term and temporary workforce needs
    needs to also be a major focus.
        And then, last, supporting other measures outside the
    committee's jurisdiction, like the Hospitality, Commerce, and
    Jobs Recovery Act, would help to accelerate business travel
    recovery, as well.
        Senator Rosen. Thank you. I'd like to just quickly move on
    to the Tour Bus impact on airports. Of course, our Harry Reid
    International Airport, at one point we had about 50 million
    visitors a year and now this last July we had 4.1 million
    visitors, and we're nearing pre-pandemic passenger volume but
    we have to improve that.
        And so, Mr. Bidwell, how can the meaningful guidelines that
    were set forth in this legislation help with the airports and
    how can strategic infrastructure investments improving our
    airports also addressed in our Omnibus bill help revive the
    travel and tourism economy in the wake of the pandemic?
        Mr. Bidwell. Thank you, Chair Rosen. Airports have
    experienced a host of operational challenges, particularly
    during the pandemic. They have needed flexibility in
    implementing and complying with security requirements, and we
    sincerely appreciate our TSA partners for working with airports
    to provide such flexibility, and it greatly assists airports
    when requirements are outcome-focused as opposed to overly
    prescriptive.
        In terms of infrastructure, our airports continue to face
    substantial infrastructure needs to replace or upgrade aging
    terminals, gates, security checkpoints and ramps, and other
    things. Inadequate infrastructure at our airports fails to meet
    the growing needs of local businesses and tourists, and this
    jeopardizes the economic recovery of American cities, states,
    and regions.
        I would just mention that in March 2021 we released an
    infrastructure report detailing more than $115 billion in
    infrastructure needs at airports over the next 5 years.
        As I noted, the task force of Federal agencies advised by
    aviation industry partners established by the Ensuring Health
    and Safety in the Skies Act will help by requiring a
    coordinated plan so we are better prepared to address the
    challenges of the recovery and have a roadmap for future
    pandemics.
        Senator Rosen. Thank you. And now I'd like to recognize
    Ranking Member Scott for his first round of questions.
        Senator Scott. Thank you, Chair Rosen.
        The travel and tourism industry in Florida and all across
    our Nation has been facing historic labor shortages. Can each
    of you talk about what you think the reason is in your industry
    and what your industries are doing to mitigate this ongoing
    issue? So, Ms. Barnes, you want to start?
        Ms. Barnes. I was going to say I'm happy to start. Thank
    you.
        You know, obviously we've had a workforce shortage that
    actually started before the pandemic. There were already some
    challenges that we were facing, but given the pandemic and sort
    of the frontline worker aspect of the virus and the
    unfortunate, you know, stay-at-home orders that we had at the
    beginning of the pandemic and the challenges the travel
    business has faced, what we lost accounted for 65 percent of
    pandemic-related unemployment and a lot of those folks moved on
    to other jobs. They were either able to find jobs or in some
    cases maybe they've left the workforce all together.
        So we need to undergo an extensive reconnaissance of what
    we can do to better attract the labor back to our industries so
    that they understand that these are good jobs, that we can have
    a significant upward mobility, and we are in the process of
    doing that because we know that there are so many great
    benefits from being in this industry and so many opportunities
    for growth.
        Additionally, we really need these jobs, right? We've got
    hotels that have floors of rooms that they can't clean, so they
    can't have folks stay in those rooms, which, you know, hurts
    their revenue. We've got destinations that because of business
    travel and international being so insecure right now,
    challenges with getting folks back because of a lack of
    certainty.
        So we're really looking to dig in to bring these workers
    back and we're going to really put forward a campaign to
    encourage folks back to our work force. So a lot needs to be
    done and I think that's why some of these incentives to help to
    get more folks traveling, get business travel back and get
    international travel back in a robust way will help to give
    security for folks to come back into this work force.
        Senator Scott. Thank you. Mr. Shah.
        Mr. Shah. Thank you. The challenges with labor have been
    across the board and it's unfortunate because at certain times
    you need to be able to have enough people in the hotel, both
    during leisure time as well as during business time, as you
    know well in Florida, and so the best thing that we can do is
    drive up business travel.
        As I mentioned in the urban markets, in particular, we're
    losing so much of our workforce because we just don't have the
    business and so tax incentives to get people traveling to
    restore conventions and conferences would be extremely
    critical, but some of the other things that are important in
    our industry in trying to attract workers back, folks have
    increased the compensation, increased benefits, things along
    those lines, but we're still seeing some challenges.
        For the industry, the American Hotel and Lodging
    Association has put forth a program called ``Hotels are
    Hiring,'' and the point of the program is to make sure that
    we're training folks. We're providing them with a million
    dollars in academic and training scholarships to make sure that
    folks are ready for this particular workforce for this new type
    of labor that we're expecting. And so the industry has faced a
    number of challenges, but we're optimistic that if Congress can
    put forth motivations to drive more people into our hotels that
    we'll have a ready workforce at that time.
        Senator Scott. Thank you. Ms. Neufang.
        Ms. Neufang. Yes, from my perspective, I could say that
    about one-eighth of our members became honorary members during
    the pandemic, meaning the lost their jobs and we gave them
    honorary membership in our association. That's probably
    indicative across the board of supply side and, to a lesser
    extent, the buy side.
        Most companies did keep their policy decisionmakers on
    staff for what their travel would become. This was primarily a
    supply side effect of the pandemic and the uneven effect of
    international, especially international inbound restrictions
    and where we were able to go but not come back, that affected
    us profoundly.
        I think the other piece that certainly is something to
    consider in driving the demand that the other witnesses have
    talked about is offices do need to reopen. For offices to
    reopen gives that place for a meeting to happen and that drives
    so much travel within the business travel industry. You travel
    to meet. You don't travel in business for esoteric reasons. So
    that meeting location is so very important and I think the
    benefits that come for helping either hospitality industry or
    the meetings and conferences industry as well as ultimately
    that workforce and the place where they work, opening up those
    offices again means that they have a place to meet again and
    ultimately that will drive business travel back in a normal
    sphere, as well.
        Senator Scott. Thank you. Mr. Bidwell.
        Mr. Bidwell. Thank you for the question. Inherent
    challenges are not just limited to airports, as you noted. TSA
    is also experiencing challenges in hiring transportation
    security officers. To respond to the challenges, airports have
    held job fairs which have proven successful and some airports
    have also provided incentives.
        Senator Scott. Thank you. Thank you, Chair Rosen.
        Senator Rosen. Thank you.
        I'd like to now recognize Senator Klobuchar.

                   STATEMENT OF HON. AMY KLOBUCHAR,
                      U.S. SENATOR FROM MINNESOTA

        Senator Klobuchar. Thank you very much, Madam Chairwoman.
    Thank you for holding this hearing. Thank you, Senator Scott,
    as well.
        So I'm over at Judiciary where we're having another hearing
    I'm chairing, but I wanted to be on. I think you know how much
    I care about this. Inbound international travel has
    historically been the Nation's second largest industry export
    before the pandemic.
        As we know we saw 91 percent decrease in international
    visitors since the pandemic, and Senator Blunt and I have long
    led the bipartisan legislation to continue the funding of Brand
    USA to restore some of the funding and I appreciate the work
    that all my colleagues have been doing on this.
        And, Ms. Barnes, I guess I would start with you. Our bill
    would direct the Secretary of Treasury to temporarily allow the
    Department of Commerce to access critical funding to help fund
    Brand USA next year.
        As the travel industry starts to rebound, the recent
    announcement of allowing international travelers in with
    vaccinations, can you speak to the importance of restoring
    Brand USA?
        Ms. Barnes. Absolutely, Senator. Thank you for the question
    and for your significant leadership on this important issue.
        I think one of the benefits of Brand USA is really that
    it's been funded without American taxpayer dollars and the
    solution that you all have found would enable that to continue.
    Investments in Brand USA provide a 25:1 return on investment.
    So we know that the dollars would be put to good use and as you
    noted, the decline in international inbound has been so
    significant for such a long period of time, for 18 months, that
    if we're going to be the Number 1 country, the Number 1
    destination of the future, we absolutely need Brand USA to
    accelerate their work and to be able to invite international
    travelers back to the U.S.
        So incredibly----
        Senator Klobuchar. I think it would be especially timely
    because you want to invite a new group back in, some of whom
    haven't been traveling for awhile. We always have the problem
    that we have competitors advertising and until we have Brand
    USA, as you know, we are really hamstrung about what we could
    do.
        So as you talked, it made me realize the moment matters. As
    people start traveling again, we want them to remember to come
    to our country where they spend an average of how much, Ms.
    Barnes?
        Ms. Barnes. An average of $4,000 per international visitor
    and so----
        Senator Klobuchar. At Mall of America in Bloomington,
    Minnesota.
        Ms. Barnes. Exactly. Shopping is important.
        Senator Klobuchar. I have another question and, you know,
    the recent announcement was great and maybe this could go to I
    think maybe you, Mr. Shah, about people flying in and the
    vaccinations. We're all happy about that. There is still a
    strange situation on my border, the Canadian border where we
    were happy. I worked really hard on this as head of the
    American-Canadian Interparliamentary Group to get Minnesotans
    and Americans can now with the vaccination travel to Canada.
    They can see their loved ones. They stay in their hotels, blah-
    blah-blah-blah.
        Well now they can fly to America, the Canadians, who have
    an over 80 percent vaccination rate, but they can't drive, and
    I was thinking of you, Mr. Shah, because especially from a
    hotel perspective this is a problem because you can fly to
    Florida from Montreal but you can't drive from Thunder Bay,
    Canada, to Duluth and so you can imagine all the border states
    would like the Biden Administration to change that, I'm hopeful
    they will soon, but there's a group of us on the border really
    advocating for that change, especially when their vaccination
    rate is higher than ours.
        Could you comment, Mr. Shah.
        Mr. Shah. I appreciate that, and as somebody who grew up in
    Wisconsin right next door I definitely understand the proximity
    and the frustration, especially where if you can fly but you
    can't drive across, in some cases it could take hours versus
    just a couple of minutes to come across the border, and so
    we're hoping with opening up of the travel restrictions from
    the Administration we'll be in a better position, but I tell
    you the most important thing that we can do for the hotel
    industry right now is to pass the Save Hotel Jobs Act.
        This is such a critical provision that will provide payroll
    and benefits to hotel employees so they're able to make it
    across until travel resumes. So definitely understand the
    challenges that we're facing but hopefully this will help
    protect the hotel industry soon.
        Senator Klobuchar. OK. Well, thank you. I'll put the rest
    of my questions for the other witnesses on the record, and
    thank you very much, Madam Chair.
        Senator Rosen. Thank you, Senator Klobuchar.
        Next, I'd like to recognize Senator Blunt.

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

        Senator Blunt. Well, thank you, Chairman. I didn't expect
    to be recognized quite that quickly. I will say, as I would
    have anticipated, Senator Klobuchar asked a number of the
    questions I was going to ask and we have worked closely on
    these issues for a long time. I do hope that the Brand USA
    solution that we're collectively proposing gets us back in the
    competition for foreign travelers. They're important to us. I
    think clearly they're also important not just to our economy
    but to our relationships around the world.
        It is in so many ways our best diplomatic effort to have
    people come here and they almost always like us better when
    they leave than they thought they would, even if they thought
    they'd like us a lot when they got here and so that's all good.
        I would say another thing that Senator Klobuchar and I have
    asked the Administration to do through the Department of
    Commerce is to study the report on the effects that COVID-19
    have had on the travel and tourism industry really to be sure
    that we know what we're doing as we move forward.
        I think maybe I'd pose to every person on the panel,
    starting with Mr. Shah, beyond the economic impact, which I
    think will clearly be in the report, what's another thing or
    two, Mr. Shah, that you'd like to see in this report as it
    relates to travel and tourism and particularly your industry,
    maybe something you wouldn't have anticipated at the beginning
    of COVID-19 that now is obviously one of the ongoing challenges
    because of COVID-19?
        Mr. Shah. Appreciate the question, as a Mizzou grad,
    appreciate your leadership on so many travel and tourism issues
    during your tenure in the Senate.
        For our industry as we're looking and appreciate in the
    Tour Bus the provision for the study, you know, there's so many
    issues that the industry is facing that we didn't anticipate,
    as you mentioned, but predominantly the impact on jobs.
        So, first and foremost, of course, what is happening and
    the uneven nature of the recovery for our industry is really
    challenging because you can't anticipate when we're going to be
    able to have a steady stream of visitors come back and a steady
    stream of guests and people coming visiting our hotels.
        So making sure that we understand the trajectory of the
    pandemic relative to jobs and that's why the Stay at Hotel Jobs
    is so critical.
        The other piece is on tax revenues. The implications of
    taxes for America's hotels on the local communities in which
    they serve are absolutely critical, from, of course, Federal
    taxes but to property taxes, to sales taxes, all of the taxes
    that folks have to pay, but they help uplift local communities.
        Of course, in doing so, the challenges that we are going to
    see if there's all of a sudden a wave of foreclosures, for
    instances, within the hotel industry because we don't have
    enough guests for folks to be able to meet their mortgage
    obligations, things along those lines are going to be a big
    challenge, and because the trajectory for our industry won't be
    until 2024, recovery won't be until 2024, there's still a long
    way to go. So we'd encourage you to take a look into both of
    those areas.
        Senator Blunt. Thank you. Ms. Barnes.
        Ms. Barnes. Thank you, Senator, and thank you, as always,
    for your tremendous leadership of Brand USA and all issues on
    the travel industry.
        I think another thing really to look at is, as we look at
    the future of transportation and travel mobility, how some of
    the sustainability-related issues will impact our industry.
        Before we entered the pandemic, we were having in some
    areas a sort of an over-tourism issue and we were looking to
    try to make sure that we were encouraging folks to look at
    other related destinations when they would come to a city, for
    example.
        I think, as well, as we look at the way the auto industry,
    for example, has set robust goals for electric vehicle
    infrastructure and electric vehicle targets of having all
    electric fleets by 2035, that's going to change the way that
    folks drive across the country and the destinations that
    they're able to go to and so I think that it's really important
    that we think about the long-term viability of the industry and
    the critical infrastructure needs that we will have over the
    next several decades.
        So I think that that's something, along with the items that
    Chirag mentioned, the workforce piece is obviously another
    really critical issue, but I think we need to be thinking long
    term about where and how the industry's going to change and how
    we can be prepared to welcome folks both domestically and
    internationally for the long term.
        Senator Blunt. Thank you. What about airport security
    issues, other security issues, and really other airport issues
    that you'd like to see looked at, Mr. Bidwell, in the report
    we've asked for?
        Mr. Bidwell. Thank you, Senator, for the question. You
    know, one of the things I think we need to consider is that
    measures to the greatest extent possible are targeted and based
    on science.
        As an example, the point that Senator Klobuchar mentioned
    about the closure of the northern border, many Canadians drive
    to the United States to then fly out of airports close to the
    border because it is beneficial for them, and the other thing
    that I would say is that we need to consider all the measures
    that the aviation industry has implemented to provide for the
    safety, security, and the health of the traveling public and
    then, last, I would just reiterate a point that I made
    previously during my opening remarks about the need to ensure
    ample funding and the appropriate number of transportation
    security officers and Customs and Border Protection officers to
    keep pace with the growth and travel and anticipated growth in
    international travel, and I would note that technology,
    particularly screening technology, plays a key component in
    that.
        Senator Blunt. Right. Well, that's a good point. I actually
    was going to ask the question about the border, too, and I'm
    not sure I would have thought about the importance of access to
    those airports in our country close to the border. That's a
    really good point.
        I think I would have pointed out that I could make the
    argument, I believe, that for vaccinated people probably safer
    to come across in your own car than it is to get in groups of
    people, not to discourage air travel. We all know we all do
    that and understand it and appreciate it and couldn't live
    without it, but it seemed to me an unreasonable line to draw
    that you could fly in but you couldn't drive in from our
    neighbor and our important trading partner.
        Ms. Neufang, from this global business travel generally,
    what would you like to see in the commerce report that looks at
    what we've been through and makes recommendations about the
    future?
        Ms. Neufang. Thank you, Senator. I agree with Ms. Barnes on
    the sustainability issue. I think workplaces and CFOs as well
    as CEOs and their H.R. departments have woken up to the
    sustainability issues, sometimes using sustainability as their
    excuse not to be traveling again. So we need government help to
    support the kinds of sustainable actions around sustainable
    aviation fuels support or benefits, ground transportation
    options that are sustainable in urban centers to get those
    meetings back to where those urban centers are hurting the
    most.
        The second area is around work culture itself. I think
    there is a lot of study left to be done on the number of people
    that started jobs without ever having met their counterparts
    and leaving those jobs during this pandemic without ever having
    met a single person in their company and how workplace culture
    and the travel, the commute, the pieces that are part of it,
    coming together to meet, to get work done is a primary function
    of humanity and a way that we need to understand what and if
    any long-lasting effects those are and who comes back first,
    what are their advantages when it comes to commerce and the way
    that they do their business, and, finally, I would say this is,
    at least from what we read in many of the media outlets these
    days, will not be the last pandemic that we deal with in our
    lifetimes and so what did we do well in the last 18 months,
    what could we have done better, and how can we get in front of
    especially cross-border policy cooperation and consistency to
    make sure that we are approaching the next pandemic with as
    many tools as we have available and making those policies set
    up so that there is less confusion and less inconsistency in
    the way that we process whether it's ground border crossings or
    air border air travel into other borders in the future.
        So those would be three on my wish list.
        Senator Blunt. Well, thank you. We'll be sure that the
    people putting this study together have all of that input. It's
    very helpful and thank you, Chair.
        Senator Rosen. Thank you, Senator Blunt.
        Next, I'd like to recognize, asking questions remotely,
    Senator Sinema.

                   STATEMENT OF HON. KYRSTEN SINEMA,
                       U.S. SENATOR FROM ARIZONA

        Senator Sinema. Thank you so much, Madam Chair, and thank
    you to our witnesses for joining us today.
        Tourism represents such an important industry for my home
    state of Arizona. In 2019 Arizona's tourism industry welcomed
    more than 46 million overnight visitors, which generated over
    $25 billion in direct travel spending and helped support state
    and local government revenue.
        The COVID-19 pandemic has created difficult challenges for
    many Arizona communities, small business owners, and Arizonans
    who work in the tourism industry.
        In 2020, spending by domestic and international travelers
    declined by 41 percent, hurting many local businesses and
    putting many Arizonans out of work, and according to the
    Arizona Lodging and Tourism Association, COVID-19 has wiped out
    10 years of job growth for Arizona tourism and, unfortunately,
    we're not out of the woods yet as increasing COVID case numbers
    are driven by the Delta variant.
        The Arizona Office of Tourism reports that tourism spending
    through July 2021 is down $4.5 billion compared to the same
    period in 2019.
        Given these significant challenges for Arizonans, I'll
    continue to work with my colleagues on this subcommittee to
    develop bipartisan solutions to these issues and help get
    Arizona's tourism industry back to work.
        Now my first question is for Ms. Neufang. Arizona is a
    prime destination for large business and group travel.
    According to the Arizona Lodging and Tourism Association,
    business and group travel accounts for more than half of our
    annual hotel revenue. According to Visit Tucson, since March
    2020, the Tucson area has had 149 meetings canceled, which
    resulted in a $48 million loss in economic impact throughout
    the region.
        Visit Phoenix estimates that the decline in business travel
    resulted in over $950 million in lost spending.
        Estimates show that business travel may not return to pre-
    pandemic levels until 2024 and Arizonans are seeing that trend.
    Just last week, Phoenix had three large conventions scheduled
    for this fall cancel in one day.
        Can you describe why business and group travel is so
    important to the tourism industry and how the decline in this
    type of travel hurts Arizona's small businesses?
        Ms. Neufang. Thank you, Senator Sinema, for that question,
    and my heart goes out to the communities of Tucson and Phoenix
    for what is certainly a devastating impact of this virus.
        We are holding our own convention in the great state of
    Florida in Orlando in November and we do--we get questions
    every day, are you still holding it, are you still holding it?
        So the impact of COVID from a $1.4 trillion business travel
    global industry with losses in the 50 percent range on the U.S.
    basis, it's a loss of 57 percent. Certainly we've gone from a
    high-high. We were the largest traveling entity in the world as
    the U.S. domestically and outbound. We became one of the ones
    highly impacted because of the surge and the re-surge of the
    virus.
        We were actually on a great trajectory in May and June and
    the beginning of July where we were seeing in our polling that
    more companies were coming back to travel domestically in
    particular, but what we see now, for example, is that 78
    percent of companies polled just 3 weeks ago have still stopped
    all international travel for their companies and only 18
    percent with the current state of Delta variant were planning
    to restart that in the next 3 months. So there's a long hill to
    climb.
        There are companies I speak to who are actually eager to
    get back on the road again, certain types of travel will be
    back on the road again, and what we need to do, both as
    government and as industry, we need to celebrate the
    conferences and large meetings that come up without a hitch and
    my board and I are speaking about that as we speak. We know
    that lots of convention centers are indeed putting on very safe
    conferences and hotels are putting on large conferences of 200
    to 800 people, all with the mitigations that we need to have,
    and I think we need to celebrate that return and the safety
    that we are showing as an industry on how to have a safe
    meeting and how to carry that forward to stop the panic because
    we see some panic at the moment and we would really like to
    calm that down again.
        Senator Sinema. Thank you. My next question is for Mr.
    Shah. Home to 22 National Park Service sites, including Grand
    Canyon National Park, it's no surprise that many leisure
    travelers chose to visit Arizona. In 2019, these visitors
    supported over 300,000 jobs.
        Now your organization reports the recent increase in the
    number of COVID cases nationwide is discouraging leisure
    travelers from taking trips with 55 percent of respondents
    reporting they're likely to postpone travel and 42 percent
    stating they don't plan to reschedule their postponed trips.
        How are Arizona hotels, restaurants, and other small
    businesses that cater to tourists affected when leisure
    travelers opt not to take their trips, and does this compound
    the effects felt by the decline in business and group travel?
        Mr. Shah. Yes, thank you, Senator, appreciate the question.
    Absolutely. The uncertainty around the trajectory of the virus
    but also the responses and whether or not people are going to
    gather really lends to this.
        So as far as leisure travelers because people are uncertain
    as to whether or not they feel comfortable with travel, that is
    one of the biggest challenges. That's why half of all leisure
    travelers are starting to postpone or cancel trips and that's
    compounding the issue with business travelers as there's so
    much uncertainty.
        You saw it with business travel. A number of companies
    decided that they were going to move back when they were going
    to come back to work and that's become even more indefinite.
        We've also seen this, frankly, from various units of
    government, as well. There isn't a consistent response from the
    Federal Government to state governments to local governments
    and so it's very difficult for any entity to really plan on a
    mark and follow that guideline and so once there is additional
    certainty that will drive up confidence as far as whether folks
    will be out and able to travel, but that again the impact goes
    back to the jobs in the lodging industry and because of that
    uncertainty, because you can't have guests 7 days a week, it's
    very difficult to have a workforce that's there and provide
    them with enough work to do for those 7 days and that's why
    we're asking for Congress' help to bridge that gap until travel
    returns and that's why we're asking them to pass the Save Hotel
    Jobs Act.
        Senator Sinema. Thank you. My next question is for Mr.
    Bidwell. Before the pandemic, we saw record levels of airline
    passenger traffic, which put pressure on our existing
    infrastructure. This increased demand highlighted the need to
    improve runways and taxiways, terminals, and air traffic
    control towers to prevent overcrowding and delays.
        The bipartisan Infrastructure Investment and Jobs Act
    legislation I introduced in the U.S. Senate included $25
    billion for our Nation's airports. This will help airports
    upgrade their runways and taxiways as well as their terminals
    and air traffic control facilities.
        As airports continue to respond to the challenges of the
    COVID pandemic, why is this infrastructure funding so important
    for both our large and smaller airports in Arizona?
        Mr. Bidwell. Senator, thank you very much for the question.
    Our airports continue to face substantial infrastructure needs.
        In March, ACI-NA released an infrastructure report
    detailing more than $115 billion in infrastructure needs at
    airports over the next 5 years and this includes two billion in
    Arizona.
        The important thing to note is coupled with the current
    debt burden of nearly $90 billion from past projects, the
    report shows that our airports are falling further behind in
    their efforts to upgrade their facilities and improve the
    overall experience for their customers.
        We are very grateful for your work and the Senate's
    bipartisan Infrastructure bill which includes $20 billion in
    new funding over the next 5 years for airports. This funding
    has broad flexibility to address a variety of the projects that
    are needed that you mentioned, but we really need to look at
    the longer term after this one-time capital infusion, you know,
    takes effect and plan for consistent funding to ensure airports
    have the ability to pay for infrastructure projects going
    forward and we certainly look forward to working with you and
    other members of the Committee on that long-term effort. Thank
    you.
        Senator Sinema. Thank you. Madam Chair, I apologize. I just
    noticed that my time has expired, and I want to thank you for
    your indulgence.
        Senator Rosen. Thank you. I appreciate that.
        I'd just like to build a little bit right now upon what
    everyone's been talking about, conferences, conventions,
    business travel. I don't have to tell anybody about the great
    conferences and conventions we have in Las Vegas, some of the
    greatest conventions in the world. Of course, Ranking Member
    Scott and I, we have a lot of competition there, and all the
    conventions are great. Whatever city they are in, our
    communities need them because that spending, that spending on
    business travel in 2019 was over approximately $334 billion.
        As we learned from Ms. Neufang's testimony, of course, and
    I don't need any statistics, business travel is down and
    conventions are down, and there is uncertainty out there.
        Senator Sullivan, he has the Visit America Act of which I'm
    a proud co-sponsor, to help address this problem by creating an
    Assistant Secretary position within the Department of Commerce
    that would be focused on bolstering America's travel and
    tourism industry and coordinating strategies across multiple
    Federal agencies and so, Ms. Neufang, would you talk about the
    impact that creating this Assistant Secretary position could
    have on travel and particularly the business and convention
    travel? As Mr. Shah spoke to, we need that reliability. Those
    are those mid-week travelers, right, that keep the hotels open
    during the week for our leisure travelers to come on the
    weekend.
        So Ms. Neufang.
        Ms. Neufang. Indeed. Thank you, Senator Rosen. The crux of
    the matter is we very much support that. With yesterday's
    announcement of the ending of the travel ban on certain
    travelers to the U.S., it really becomes even more important
    that our messaging across the board be cohesive, be consistent.
    Travelers need that one-stop shop from messaging in order to
    understand what travel requirements are and whether borders are
    open and how they are open.
        So the creation of an Assistant Secretary position will
    allow for that greater cross-agency, cross-industry, and other
    cross-business collaboration to ensure travelers have the
    information they need to resume their travels to the U.S.
        I also just referred to safe conventions and being able to
    crow a bit about how safe they actually are and I think this
    office would actually help with that cohesive message.
        Additionally, it's also important for that office to set
    and pursue goals to increase international inbound travel into
    the U.S. This is a daunting task in the current environment, to
    come from a screeching halt to go to a business as usual again,
    but having an office like this within the Administration to
    pursue this is vital to our success in my opinion.
        Senator Rosen. Thank you. I have one more question and then
    I'm going to yield to Senator Scott, but I want to talk about
    travel and tourism at the Department of Transportation.
        I know some of you here today have talked about coming to a
    meeting, how do you get there, do you drive there, if you come
    to an airport, what's the transportation to get to where you
    need to be, and, of course, the Senate passed an infrastructure
    bill which includes my bill to update the National Travel and
    Tourism Strategic Plan from the Department of Transportation to
    consider the impacts of COVID-19 but we also want to lay out
    infrastructure investments that we need to help our tourism
    industry, fixing our interstates, mass transit, trains, tour--
    well, tour bus. Our bill is called the Tour Bus, but we have a
    robust tour bus industry, rail service options, like I said,
    ports for the state of Florida.
        Ms. Barnes, again, would you speak to the need of this kind
    of focus by the department in infrastructure investment to
    really how good that would be for the industry and if you want
    to speak a little bit about anything you know about in the
    Infrastructure bill that we just passed that would really be
    beneficial to the tourism industry?
        Ms. Barnes. Sure. Absolutely. And thank you for your
    leadership there. We really do believe that it's critical. We
    have, you know, a national program to move freight, but we
    don't have a national program to actually move people and
    that's what the work in provisions that were included in that
    bipartisan infrastructure package would do.
        I think establishing a Chief Travel and Tourism Officer at
    the Department of Transportation will really help ensure that
    travel-related projects are competitive to receive Federal
    funds, and again we need that collaboration, that cross-agency
    cooperation that was obviously noted in the Travel America Act,
    but by having a leadership role at the Department of
    Transportation, as well, and really prioritizing the way that
    we look at the travel industry and how we get around is really,
    really critical.
        You know, we talked a little bit about how, you know,
    domestic travel is doing better and this is really--we focused
    on business travel and international, and domestic can't prop
    up business and international. We need a comprehensive way to
    look at all of these different segments that are so critical to
    the whole of our industry and they're all vital to being able
    to return and accelerate a recovery.
        So if we want to be able to recover sooner than the next
    four or 5 years, we need these types of programs in place and
    this type of leadership at the top of these agencies and your
    legislation and the work that you all have done would really
    enable us to expedite these critical programs.
        Senator Rosen. Thank you.
        Senator Scott.
        Senator Scott. Thank you, Chair Rosen.
        Mr. Bidwell, I was surprised to hear how big the number is
    as far as infrastructure needs our airport industry has. There
    are different ways to pay for it. We can either have the user
    pay for it, the flying public, business or consumers. We could
    have the local community which gets the benefit out of a robust
    airport system, or we could have the Federal taxpayers pay for
    it that would allocate it among users and non-users.
        What would you recommend would be the best way to fund
    infrastructure for our airports?
        Mr. Bidwell. Senator, thank you very much for the question.
    One of the things that we have been very supportive of as a
    potential solution to help address this challenging issue of
    the need for funding to support infrastructure projects at
    airports is to modernize the passenger security fee. These are
    fees that are collected locally by users of the system and they
    are also used locally to invest in these types of
    infrastructure projects that benefit travelers at those local
    airports, whether it's expanding security checkpoints or doing
    some of the projects that Senator Sinema mentioned earlier.
        These modernized passenger facility charges would go a long
    way to addressing the challenges that we have in identifying
    available funding to support infrastructure projects.
        Senator Scott. Can each airport decide what the passenger
    fee is for that airport?
        Mr. Bidwell. Now the passenger facility charge has been
    capped by Congress for years and is in great need of
    modernization. In deciding how that funding, when collected, is
    allocated, it's really a coordinated effort between the Federal
    Aviation Administration and the airlines also have input on the
    projects that it is allocated toward.
        Senator Scott. So if the Orlando Airport or the Las Vegas
    Airport wanted to have a separate fee to modernize their
    airport, they don't have the ability to do that?
        Mr. Bidwell. They don't have the ability to impose a user
    fee similar to the passenger facility charge. I mean, they
    collect money or revenue from other things but that has been
    significantly diminished as a result of the pandemic. Whether
    it's concessions revenue or revenue from parking or other
    things of that nature, it's down significantly right now, which
    is why finding other sources, such as modernizing the passenger
    facility charge, is so critical.
        Senator Scott. Thank you. Thank you, Chair Rosen.
        Senator Rosen. Well, thank you. We were trying to wait for
    Senator Blackburn but I'm not sure she's going to be able to
    make it with us. So we will have her submit her questions for
    the record.
        So I want to thank everyone so much for participating in
    today's hearing.
        I'm looking forward to working with Ranking Member Scott,
    Chair Cantwell, Ranking Member Wicker, and all the members of
    the Subcommittee to use what we've learned today to finalize
    our bipartisan Omnibus Tourism legislation so that we can bring
    it before the Full Committee for a vote. Today's hearing was a
    great step in that direction.
        The hearing record will remain open for two weeks, until
    Tuesday, October 5, 2021. I'd like to submit for the record a
    letter from the American Society of Travel Advisors and I guess
    I get to approve that for myself, as well. Any Senators, of
    course, that wish to submit questions for the record or
    anything else should do so by Tuesday, October 5, 2021.
        [The information requested follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Senator Rosen. For those of you who testified today, we ask
    that your responses be returned to the Committee as quickly as
    possible and in no case later than two weeks after receipt.
        That concludes today's hearing.
        [Whereupon, at 4:29 p.m., the hearing was concluded.]

                                A P P E N D I X

       Response to Written Question Submitted by Hon. Kyrsten Sinema to
                              Tori Emerson Barnes
        International Travel and Coronavirus. Arizona benefits from
    international visitors who support small business jobs in our border
    counties and in northern Arizona near the Grand Canyon. In 2020,
    Arizona lost over $3 billion in spending from international travelers.
    My state also welcomes our fellow Americans and international visitors
    who spend significant amounts of time in Arizona during the winter
    months. In fact, the Arizona Office of Tourism reports that 280,000
    Canadians alone visit Arizona for an average of 60 days each winter.

        Question. Given the presence of the highly transmissible Delta
    variant, how do you propose to safely encourage more international
    travelers to visit the United States? What actions could the
    administration take to make it easier for international tourists to
    visit while protecting public health?
        Answer. Thank you for the question, Senator Sinema. First and
    foremost, we are encouraging all Americans and international visitors
    to get fully vaccinated as soon as possible, since the vaccine
    continues to be our best defense against the virus. In addition, the
    travel industry has taken extraordinary steps to ensure the health and
    safety of our customers throughout their journey. From hospital-grade
    air filters onboard aircraft and physical distancing measures in
    airports to cleaning and sanitation protocols in hotels, and more,
    travel continues to be safer than many other routine activities that
    Americans undertake each day.
        The Biden Administration can safely restart international travel
    and our Nation's economic recovery by replacing 212f travel bans with
    risk-based entry requirements for foreign visitors. For example,
    implementing a targeted inbound vaccine requirement for international
    air arrivals would help protect both international visitors and
    American communities during their stay. In fact, if an inbound vaccine
    requirement were implemented, international visitors would be one of
    the most highly vaccinated and low risk populations anywhere in the
    country.
                                     ______

      Response to Written Question Submitted by Hon. Marsha Blackburn to
                              Tori Emerson Barnes
        Question. Could you please tell me how this period of inaction
    further hurt struggling tourism operations during this past summer?
        Answer. Thank you for the question, Senator Blackburn.
        The travel industry continues to face headwinds. Despite domestic
    leisure travel recovering to near-pandemic levels, other sectors of
    travel lag significantly behind. Specifically, sustained declines in
    international inbound travel, professional meetings and events (PMEs)
    including transient business travel, and employment continue to stymie
    recovery.
        Total losses are staggering. Since the beginning of the pandemic,
    the industry has lost a cumulative $670 billion in travel spending,
    causing a loss of $82 billion in federal, state and local tax revenue.
        Declines in international inbound travel alone have resulted in
    more than $250 billion in lost export income. This is due in large part
    to 212(f) restrictions that were initially put in place in in early
    2020 when we knew almost nothing about the virus., The reduction in
    visa processing capacity as also been a significant challenge.
    Unfortunately, as vaccination rates increased and the pandemic's
    outlook started to improve, many of these challenges continued to
    compound the problem. For example, as of mid-October of 2021, 60
    percent of U.S. visa processing consulates and embassies globally
    remain fully or partially closed.
        With the Administration's recent announcement that it will lift
    212(f) restrictions and reopen international travel more broadly to
    vaccinated foreign nationals with proof of a negative COVID test, we're
    hopeful that is will be a significant turning point for the travel
    industry's recovery. However, this reopening is just the first step in
    reviving international travel; it is not a last step and there is much
    work that will continue to be necessary to ensure we can welcome
    international travelers in a robust way.
        Meanwhile, business travel is expected to be down 57 percent this
    year (compared to 2019 levels), while international inbound travel is
    projected to be down 70 percent. Without targeted support, the turmoil,
    hardships and uneven recovery within the travel industry will continue
    to negatively impact the overall economy slowing a full recovery.
        In order to avoid such a scenario, we urge Congress and the
    Administration to work together to put in place the policies needed to
    ensure the industry emerges from this crisis stronger than ever.
        Such policies include: (1) the provisions included in the Omnibus
    Travel and Tourism Act, specifically providing emergency funding for
    Brand USA (2) tax policies designed to support the restoration of
    business travel (particularly PMEs), (3) continued relief to travel
    businesses facing hardship due to COVID-19 restrictions, (4) efforts to
    accelerate visa processing and reduce visa wait times (which exceeded 6
    months on average in August), and (5) adequate funding for CBP staffing
    and overtime pay to ensure they can efficiently process the increase in
    inbound international arrivals as the country reopens.
        We thank the committee for their continued attention to the unique
    challenges facing our industry and your leadership on issues impacting
    the U.S. travel industry.
                                     ______

        Response to Written Question Submitted by Hon. Amy Klobuchar to
                                Suzanne Neufang
        Support of the Travel and Tourism Industry. I fought for the
    coronavirus relief package to include $750 million in funding for
    Economic Development Administration (EDA) grants to support the tourism
    industry, which is based on a bill I introduced with Senators Cortez
    Masto, Blunt, and Cramer to fund tourism marketing and promotion
    activities and organizations to help increase travel.

        Question. In your testimony, you note that as we begin to reopen,
    it will be vital for us to promote travel to the U.S. and inform the
    world that America is safe and open for business. Can you speak to the
    role both domestic and international travel will play in contributing
    to our state and local economies?
        Answer. First, thank you for your efforts on this push, GBTA was
    supportive of the effort to include the $750 million for EDA grants.
    GBTA did this because domestic and international business travel is an
    economic growth generator for U.S. localities.
        According to GBTA research, U.S. companies alone spend $313 billion
    in 2019 on business travel. This directly supports local transportation
    and hospitality industry jobs and helps fund local economic development
    projects.

       Typical U.S. business travelers spend an average of $520 on
            each trip (or double that if air transportation is involved).
            International business travelers to the U.S. spend an even
            greater amount per trip, contributing over $9.2 billion to the
            U.S. economy.

       For every one percent change in business travel spending,
            the U.S. economy gains or loses an additional 74,000 jobs,
            nearly $5.5 billion in GDP, $3.3 billion in wages and $1.3
            billion more in tax collections.

       Local business travel contributes a significant amount to
            federal, state and local tax receipts, to the tune of $135B.

        International travel has a significant impact on U.S. businesses.
        In just looking at the impact of the Visa Waiver Program, a program
    of the U.S. Federal government that allows nationals of specific
    countries to travel to the United States for tourism, business or while
    in transit for up to 90 days without having to obtain a visa, the
    economic numbers are impressive.

       International travelers stay longer and spend more while
            here--an average of 18 nights and nearly $4,400 per person per
            trip. For every 35 overseas travelers who decide to visit the
            United States, an additional American job is created.

       In 2018 alone, 23 million travelers arrived through the VWP
            (57 percent of overseas visitors), generating $190 billion in
            economic output and supporting nearly one million jobs.

        Thank you for your efforts in bring travel back to the United
    States. Telling the world the U.S. is open for business is key for the
    U.S. business and leisure travel to emerge from the pandemic improved
    and stronger.
                                     ______

      Response to Written Question Submitted by Hon. Marsha Blackburn to
                                Suzanne Neufang
        Question. Could you please tell me how this period of inaction
    further hurt struggling tourism operations during this past summer?
        Answer. The Covid pandemic has impacted the travel and tourism
    industry as the public health crisis demanded that measures be taken to
    socially distance, wear masks, and close our borders.
        The decision to close the U.S. border in 2020 was necessary to
    protect public health, but it had an understandably negative impact on
    international travel. According to GBTA's Business Travel Index, the
    true global financial impact of COVID-19 began in Q2 2020, resulting in
    an expected 68 percent decline (to $738 billion USD) from April 1, 2020
    to the end of the year. Because of the relatively strong (pre-COVID)
    first quarter of 2020, global spending on business travel is expected
    to show a 52 percent decrease for all of 2020 (to $694 billion USD),
    down from $1.4 trillion USD in 2019.
        The summer months are typically slow ones for business travel in
    any given year, and our GBTA polling of the business travel industry
    reflected as much. For example, in August 2021, GBTA research found one
    in four (24 percent) of travel suppliers reported their bookings
    increased from the previous month. However, when we look at our most
    recent October poll, over half (55 percent) report their bookings have
    increased from the previous month.
        As we move forward and re-open the U.S. to international travel we
    expect international business travel to increase among U.S.-based
    employees. GBTA's October 2021 poll finds one in four (23 percent) of
    U.S.-based respondents report their company plans to resume
    international business travel in the next one-three months--an increase
    of 10 percentage points from August.
                                     ______

        Response to Written Question Submitted by Hon. Amy Klobuchar to
                             Christopher R. Bidwell
        Air Travel Workforce. In your testimony, you note that once we open
    international borders, Congress must ensure there is a sufficient TSA
    and Border Patrol workforce to keep travelers safe.

        Question. Can you elaborate on the workforce challenges, and speak
    to how the Federal government can help airports meet their workforce
    needs?
        Answer. Particularly with the resumption of international travel,
    it is critical for Congress to provide the Transportation Security
    Administration (TSA) and Customs and Border Protection (CBP) the
    funding the agencies need to ensure security checkpoints are fully
    staffed with Transportation Security Officers and Federal Inspection
    Stations are fully staffed CBP Officers, so passengers are effectively
    and efficiently screened and processed.
        TSA needs a sufficient number of Transportation Security Officers
    (TSOs) so that screening checkpoints are opened on time, remain
    operational, and afford passenger proper physical distancing. With the
    growth in domestic passenger traffic, and the resumption of
    international travel, ACI-NA member airports are reporting increased
    wait times at security checkpoints. Some have reported wait times over
    an hour. Most airports do not have the resources to provide staff--on a
    voluntary and temporary basis--to perform non-screening functions as
    some did in previous years. A shortage of TSOs at TSA checkpoints
    during the recovery will negatively impact the aviation industry as
    well as security and airport operations. ACI-NA encourages Congress to
    provide TSA adequate funding for screening technology and the number of
    Transportation Security Officers necessary to effectively and
    efficiently screen passengers and baggage.
        Prior to the pandemic, airports suffered chronic CBP understaffing.
    The CBP workforce staffing model indicated that the agency needed over
    3,700 additional officers across the system. Staffing shortfalls at
    airports routinely result in long wait times and missed connections.
    This discourages international travelers, who spend an average of
    $4,200 per visit, from traveling to the United States. Many airports
    have also faced denied landing rights for new or existing airline
    service due to the chronic lack of CBP staffing. CBP, the Department of
    Homeland Security (DHS), Congress and airports were working together to
    increase staff when the pandemic hit. Unfortunately, the strategy
    relied on revenue from air travel. Passengers pay for CBP services
    through various fees and the reduction in international air travel over
    the last seventeen months has resulted in significantly lower
    collections. DHS and Congress need to identify non-passenger dependent
    resources to increase CBP staffing.
        ACI-NA recommends directing additional resources towards retaining
    and hiring additional CBP officers at the ports-of-entry and fully
    implementing the biometric entry-exit program. CBP user fees have
    decreased tremendously during this pandemic, which has put a huge hole
    in the agency's budget, both this year and next. ACI-NA remains at the
    forefront of a diverse coalition of industry stakeholders who support
    improving travel and trade facilitation through CBP ports-of-entry. The
    coalition--which includes leading voices from various shipping,
    tourism, travel, trade, law enforcement, and employee groups--continues
    to push for adequate funding to support the existing CBP workforce and
    to help it grow to meet future travel and trade demands. ACI-NA
    encourages Congress to provide CBP adequate funding to increase
    staffing to the level necessary to process international arriving
    passengers, baggage and cargo.
        Airports also are working with stakeholders in their facilities--
    including Federal agencies, airlines, and tenants--to develop
    ``touchless'' aviation security screening processes that provide
    enhanced security, lower false alarms, and adequate physical distancing
    for passengers and baggage moving through TSA checkpoints and CBP
    ports-of-entry. In order to further enhance security and provide for
    the health of the traveling public, we recommend additional funding for
    TSA to procure and deploy Credential Authentication Technology with a
    camera, enhanced Advanced Imaging Technology, and Computed Tomography
    at security checkpoints. These technologies increase security
    effectiveness and reduce false alarms and touch points, while
    maintaining physical distancing.
        To achieve these workforce and equipment goals, we recommend
    finally ending the diversion of user fees designed to enhance security.
    Each year billions of dollars in both TSA and CBP user fees are
    needlessly diverted from their intended purpose to subsidize other
    Federal programs. In this time of national emergency, it is critical to
    stop these budgetary gimmicks, end the fee diversion, and ensure the
    revenue is restored to its intended use of funding and enhancing
    crucial aviation security programs.
                                     ______

      Response to Written Questions Submitted by Hon. Marsha Blackburn to
                             Christopher R. Bidwell
        Question 1. Could you please tell me how this period of inaction
    further hurt struggling tourism operations during this past summer?
        Answer. This past summer, international travel volumes remained
    down significantly compared to normal due to travel restrictions put in
    place at the start of the COVID-19 pandemic. ACI-NA has long called for
    the U.S. government to implement a plan to safely reopen our borders to
    international passenger traffic, and the White House's recent
    announcement about lifting travel restrictions beginning on November 8,
    2021, is a promising step forward for our industry following a long
    period of depressed international air travel. Airports look forward to
    the increase in international service at our facilities just in time
    for the busy holiday travel season.

        Question 2. The TSA's National Explosive Detection Canine Program
    has been incredibly successful. Canine teams undergo months of
    demanding training to detect explosives based on intelligence data and
    emerging threats. Could you please elaborate why you are concerned with
    taking these highly trained dogs away from their primary role of
    screening passengers and their baggage for explosives?
        Answer. TSA's National Explosive Detection Canine Team Program has
    been an important component of a multi-layered, risk-based security
    system at U.S. airports. To support enhanced screening of passengers
    and property, Congress and TSA should look for ways to further support
    the number of TSA proprietary canine teams and increase the
    reimbursement for airports with legacy canine teams, which are handled
    by airport law enforcement officers. We encourage Congress to request
    TSA to compare the recertification rates of legacy and TSA proprietary
    canine teams, and implement best practices. Additionally, the TSA's
    Third-Party Canine-Cargo (3PK9-C) Program for cargo screening has been
    beneficial in providing consistent security and expanded screening
    capacity for air cargo.
        While there may be some benefit from cross-training TSA canines to
    detect for COVID-19, as included in the draft of the Omnibus Tourism
    Act, airports want to ensure these highly trained canines are available
    for their primary function of screening passengers and their baggage
    for explosives. Taking any canines off-line for retraining,
    certification, or additional breaks could reduce the time they are
    available at screening checkpoints. This raises potential security
    concerns and may increase passenger wait times, especially as we are
    finally seeing a rebound on air travel that is leading to increased
    passenger volumes at TSA checkpoints. We recommend Congress and the TSA
    use the findings from a recently launched COVID-19 detection canine
    pilot at Miami International Airport to inform any similar program
    initiated by the TSA.
                                     ______

        Response to Written Question Submitted by Hon. Amy Klobuchar to
                                  Chirag Shah
        Business Travel. Travel industry analysts have predicted permanent
    changes in consumer travel behavior, as employers substitute online
    meetings for travel and consumers opt to stay home for vacations.
    Reports have found that by the end of this year, business travel
    spending in the U.S. will be down 66 percent as compared to 2019--and
    down 72 percent in Minnesota.

        Question. In your testimony, you highlighted that two-thirds of
    business travelers are now postponing or canceling their travel plans.
    Can you speak to the impact the fall in business travel has had on
    hotels, and what steps we can take to address this issue?
        The pandemic has been devastating to the hospitality industry,
    wiping out a decade's worth of revenue and job growth. Business travel
    is the hotel industry's largest source of revenue and is critical to
    our industry's viability. As you noted, the hotel industry is projected
    to end 2021 down more than $59 billion nationally, or -66.2 percent,
    and over $835 million down in Minnesota, or -72.2 percent, in business
    travel revenue compared to 2019 and not expected to reach pre-pandemic
    levels until 2023.
        Leisure demand on the weekends is slowing down post Labor Day as
    vacationers have stopped traveling. Business travel demand, which
    usually provides a buffer in the fall and winter, is not materializing
    nearly at the levels it would in a normal year to offset the loss.
    According to a Deloitte survey of 150 travel managers\1\, U.S. spending
    on corporate travel may only reach 25 percent to 35 percent of 2019
    levels by the end of 2021, and a year from now, possibly 65 percent to
    80 percent. This issue is particularly acute in the major markets and
    cities that employ most of our workforce and are disproportionately
    reliant on these types of travelers. Nationally, 52 percent of hotel
    room revenue comes from business travelers and in Minnesota that figure
    is 53 percent. Given that business travel is vital for many sectors of
    the national economy, it is important that the lodging industry and
    Congress join forces to find solutions to aid its recovery. This lack
    of business travel has major repercussions for employment, which
    underscores the need for targeted relief.
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        \1\ https://www2.deloitte.com/us/en/insights/focus/transportation/
    future-of-business-travel-post-
    covid.html?id=us:2el:3pr:4di7303:5awa::MMDDYY:&pkid=1007740
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        Hotels are expected to end 2021 down nearly 500,000 jobs nationally
    compared to 2019. For every 10 people directly employed on a hotel
    property, hotels support an additional 26 jobs in the community, from
    restaurants and retail to hotel supply companies--meaning an additional
    nearly 1.3 million hotel-supported jobs are also at risk. The
    hospitality industry needs legislation that would secure help for our
    distressed sector by providing hotels with payroll and benefits
    assistance until travel patterns return and the travel sector
    experiences a more even recovery. Passing the Save Hotel Jobs Act
    (S.1519) would provide critical payroll and benefits support to hotels
    and employees who have been devastated by the pandemic. By providing
    funds that will exclusively be used on wages, leave, healthcare
    expenses, retirement, and payroll taxes, hotels will be able to keep
    employees on payroll as well as employ many more individuals.
        COVID-19 is the worst economic event in the history of the U.S.
    hotel industry. Despite being among the hardest hit, hotels are the
    only segment of the hospitality and leisure industry yet to receive
    direct aid. Hotels and their employees have displayed extraordinary
    resilience in the face of unprecedented economic challenges, but the
    industry needs support from Congress to achieve a full recovery.
                                     ______

      Response to Written Questions Submitted by Hon. Marsha Blackburn to
                                  Chirag Shah
        Question 1. Could you please tell me how this period of inaction
    further hurt struggling tourism operations during this past summer?
        Answer. The road to recovery for the hotel industry remains long
    and uneven. The lodging industry began to see an uptick this past
    Spring and Summer with leisure travel resuming. Business travel, which
    generated 53 percent of hotels revenue in typical years, on the other
    hand was still at a standstill.
        Nationwide occupancies declined rapidly in August as Delta variant
    concerns increased and critical meetings and business travel, as well
    as international visitors, failed to materialize. This issue is
    particularly acute in the major markets and cities that employ the vast
    majority of our workforce and are disproportionately reliant on these
    types of travelers. For example, Las Vegas visitor volume dropped by
    over 9 percent in August versus July. Consequently, urban market hotels
    were down more than 35 percent in revenue compared to 2019, according
    to STR, and we expect these figures to worsen through the rest of the
    year.
        It is projected that the lack of business travel alone this year
    will cost the hotel industry nearly $59 billion and overall, it is
    estimated that hotels will lose close to $97 billion in 2021. While
    there was a glimpse of hope through the summer months in certain
    markets, there is still a major uphill battle ahead for the majority of
    hotels throughout the country. Business travel is not expected to
    return to 2019 levels until 2024. Most major events, conventions and
    business meetings have also already been canceled or postponed until at
    least 2022.
        Hotels are the only segment of the hospitality and leisure industry
    yet to receive direct aid despite being among the hardest hit. That is
    why AHLA and UNITE HERE, the largest hospitality workers' union in
    North America, joined forces to call on Congress to pass the bipartisan
    Save Hotel Jobs Act (S. 1519/H.R. 3093). This legislation would provide
    a lifeline to hotel workers, providing the assistance they need to
    survive until travel, especially business travel, returns to pre-
    pandemic levels.

        Question 2. In your testimony, you mention the ``cruel irony'' of
    hotels struggling to staff up while enduring historically low occupancy
    rates. How have owners approached labor shortages in the industry
    during the summer months?
        Answer. As a result of the economic devastation caused by the
    COVID-19 pandemic, the lodging industry lost over 700,000 jobs in 2020,
    out of the 2.3 million workers employed directly in hotels pre-
    pandemic. We are expecting to remain down by 500,000 in 2021, if not
    worse than that due to challenges from the Delta variant.
        When leisure travel resumed in part during the summer months, the
    hotel industry found itself needing to quickly fill thousands of open
    positions to meet the uptick in consumer travel demand. Despite the
    fact that most hotels remained significantly worse off than 2019, they
    desperately needed to fill jobs to serve the customers that were coming
    and take in what revenue they could. To entice more workers to join the
    industry, hotels have offered employees more competitive pay, flexible
    scheduling, and additional benefits, including paid time off, health
    care benefits, retirement savings and more. Also, hotels are looking to
    create and implement more growth and development opportunities across
    the industry.
        AHLA has begun the `Hotels Are Hiring' campaign to help fill the
    thousands of open jobs and communicate the benefits of a career in the
    hotel industry. The HotelsareHiring.com portal provides resources for
    job seekers to help learn about a career in the industry and apply for
    open jobs. Additionally, the Save Hotel Jobs Act was catered
    particularly for hotel workers--by securing help for our distressed
    sector through providing hotels with payroll and benefits assistance
    until travel patterns return and the travel sector experiences a more
    even recovery.

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