[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




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       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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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
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    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
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    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
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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
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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
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    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
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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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    \10\ 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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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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